Your Paycheck Should Be Bigger, Beginning Today
CHICAGO (CBS) — Millions of workers will be pleasantly surprised when they open their paychecks today. But others may feel short changed.
It all depends on whether your employer implemented the new tax laws which boost your pay, CBS 2’s Dorothy Tucker reports.
It’s payday for Jennifer Goodwin, and to be honest she’d forgotten the new tax break that puts more money in her pocket.
“This was actually a big surprise for me. I’m actually very excited about it,” says Goodwin, who works for the website Bradsdeals.com.
With the new law, your FICA taxes — or Social Security deductions — will decrease by 2 percent, increasing take-home pay. For Goodwin, it’s an extra $26 a week, or $1,300 a year.
“It means a lot more money, which will be very helpful for all of our bills,” she said.
In Goodwin’s case, her boss actually reminded employees about the extra pay, but some workers didn’t get advance notice or didn’t see an increase.
Employers are responsible for re-calculating your taxes. Experts say most companies have taken care of the paperwork, but some are still gearing up.
“For the next few weeks, look at your paystub and get a highlighter out and highlight the FICA section,” says Jill Schlesinger, editor-at-large for CBSMoneywatch.com.
Compare this year’s pay stub to last year’s, and if you don’t see a pay increase by the end of the month, speak up, she says.
When they finally do get the correct pay, make sure your employer reimburses you for the lost wages.
Employers are supposed to have the paperwork done by Jan. 31. If they don’t, you can always call the IRS and complain.