How the Fiscal Cliff Agreement Affects You

January 7, 2013 By

A fiscal cliff agreement was finally approved late on New Year’s Day. Wealthy Americans will be hit hardest by the deal, due to a 4.6% increase on income taxes for those with incomes over $400,000 (single) or $450,000 (married). A new investment income tax of 3.8% will be levied to help fund Obama’s health care initiative, affecting those with income over $200,000 (single) or $250,000 (married).

While these high income workers represent the minority, all workers will face higher payroll taxes in 2013. The deal did not renew the 2012 payroll tax holiday. As a result, worker’s will pay a 6.2% Social Security tax, an increase of 2% over 2012 tax rates.

In Washington, many are questioning the effectiveness of this hasty agreement. Click here for more information.

How many of you are familiar with how the fiscal cliff deal?

 

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Jenni Chelenyak About Jenni Chelenyak

Jenni currently works with Adecco’s global Information Management team as a Business SME on the Candidate Management Programme. She’s been with Adecco’s Professional Staffing division since 2010 and held roles in on-boarding and compliance, client account management and technical recruiting. In her free time, she enjoys traveling, spending time with family and friends, yoga and working with an animal rescue group.

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