Some Good Uses For Your Payroll Tax 'Raise' - Spokane, North Idaho News & Weather KHQ.com

Some Good Uses For Your Payroll Tax 'Raise'

NEW YORK - It's almost like Oprah is taking over payroll departments nationwide: Everyone is getting a raise!

Last month's tax deal included a 2 percent decrease in payroll taxes for workers who pay into Social Security. That means most people will see their paychecks increase by the end of January. However, some federal workers don't pay Social Security taxes.

For a typical worker, with taxable income of about $50,000 a year, the payroll tax holiday means a $1,000 bump over the course of the year, or about $83 per month. But the math behind the actual increase likely to appear in paychecks is a bit complicated.

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