Notice to All Employees: (Why your net pay will be reduced)
Background
On Jan 1, 2013 the U.S. House of Representatives voted on a motion to concur on a Senate Proposal as part of the effort to avoid the “Fiscal Cliff”. See below:
H R 8 RECORDED VOTE 1-Jan-2013 10:57 PM
QUESTION: On Motion to Concur in the Senate Amendments
BILL TITLE: To extend certain tax relief provisions enacted in 2001 and 2003, and to provide for expedited consideration of a bill providing for comprehensive tax reform, and for other purposes.
The results of the voting were 257 for the measure, and 167 against the measure.
The bill passed by Congress would prevent the 2013 tax increases for families making under $450,000 (thus extending the Bush-era tax cuts), while letting rates rise for those making above that threshold. It would also extend unemployment insurance for another year, eliminate a proposed reduction in payments to doctors from Medicare, extends tax credits for wind energy while patching up a host of other expiring provisions and delaying automatic spending cuts for two months. Those cuts, which would hit defense heavily, will instead be offset with a blend of tax increases and other spending cuts. The bill includes $620 Billion in new taxes and about $15 Billion in spending cuts.
(See separate in-depth article for further detail on the contents of the bill)
Effect on Millennium Microwave Corporation employees
One of the results from this bill is that withholding for Social Security in 2013 will be increased by 2% as this bill did not extend the prior tax “holiday” which began in 2011. Consequently EVERY Millennium employee will see a tax INCREASE in 2013. This is CONTRARY to the promises given to us by our elected officials. See the example below:
Example: Employee earns $15.00/hour and works 80 hours in the bi-weekly pay period. The additional Social Security withholding will be about $24/pay period ($15.00/hour X 80 hours X 0.02).
All of the products we make at Millennium are used in the defense of the United States and its allies. Therefore the prospect of heavy cuts in the funding for defense within two months is a chilling prospect for our company. It is anticipated that Congress will be having detailed discussions on this subject over the next few months.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
16 comments:
Our "leaders" are going to keep taking and taking and taking. They have no choice. They let each other take turns with the RHETORIC so they can show the masses that they are on their side, but STILL spend and take. They will never stop until forced to do it. Its only a matter of time until "we, the people" decide to do just that.
Interesting this is exactly what Obama assured the middle class would not happen. Its only a matter of time (not long at all) till we start hearing all his supporters crying "I want my vote back".
He's a politician, he lies.
You know, you people are a piece of work. Taxes were not increased, the decrease expired. If this is the language we use, then no one will ever vote for a temporary tax holiday because they'll be blamed when it goes back to normal.
And we don't have enough money going into SS now! We need both a small increase in SS tax for low income earners, take the cap off for high income earners, and reduce benefits for future retirees to make sure the system is sustainable.
You jokers want to rail on about the idiots in Washington not being responsible. Here they did the responsible thing and you're on them about that! It's a no-win situation with you people.
1120, hate to be partisan here, but I could have swore it was Obama that pushed for the tax cut, then had it extended in the face of GOP opposition. Kind of hard to make this out to be a "Obama went out to raise taxes" unless you are apart of the lemming Faux News crowd.
What??? An elected official that isn't absolutely honest??? When did this start???
11:26
There's not enough money going into SS because illegals, their dependents, and lazy people are taking it away, and not paying a dime into the system.
Also why are Congress, Senate, POTUS and VP,and the cabinet exempt from SS as well as Obamacare? Its good enough for us but not for them?
They are exempt because they can't recieve it. Remember, they get pay and benefits for life?
How many of us pay into it and will never receive it?
Give me the choice, I would elect not to pay into it also!
11:40 - you can't get SS retirement benefits if you don't pay into it. Ask my mother-in-law who always worked inside the home...no outside pay, no payroll tax, no SS now that she's retired.
The reason SS is not solvent in the long run (it is now) is because people, on average, live 15 years longer than they did when the system was set up. It is not because of "illegals, their dependents, and lazy people."
Please get your facts straight.
Of course, SS Disability is something else entirely.
Correction, 1:10
They do get it.
My take home pay is $20.00 less this week than last. That is a tax increase anyway you slice it.
I agree 2:26, we just got notice our paycheck next week will have a 2% FICA increase. I would call that a TAX INCREASE. Of course you could play the silly semantics game mentioned in 11:26 post. Also concerning that post, instead of increases how about the money goes into private accounts controlled by the recepient. Even if it goes into a .3% savings account at least it wont be stolen by the government for other uses and replaced with an IOU.
1:31 is right, they do get SS
In 1984, republican Ronald Reagan approved the measure to allow many federal workers to double dip, they not only get paid salary and benefits for life, they started geting SS too.
very well said thanks for the explanation for employees
I am 68 and need my social security even though I did save as much as possible last year my spouse and I had out of pocket medical expenses over $8000. 2% is a small price to pay now so that you will have social security when you retire.
Post a Comment