Two percent cut to hit working Americans - KPLC 7 News, Lake Charles, Louisiana

Two percent cut to hit working Americans

Posted: Updated:
  • More Local NewsLocalMore>>

  • McNeese known for being a "powerhouse"

    McNeese known for being a "powerhouse"

    Friday, July 25 2014 11:18 PM EDT2014-07-26 03:18:58 GMT
    The depth of the McNeese defense is no question this year and could prove to be one of the best squads in some time.With Preseason All-America candidate Everett Ellefsen, returning starter Kevin Dorn, as well as Sean Brown. Then add transfer Brian Hine along with big boys Antonio McGhee Danyel Hunter, also tacking on Aaron Sam who earned Preseason All SLC First Team Recognition. This unit is going to be one hard line to crack. As for the team as a whole, the word used to describe them the mo...More >>
    The depth of the McNeese defense is no question this year and could prove to be one of the best squads in some time.With Preseason All-America candidate Everett Ellefsen, returning starter Kevin Dorn, as well as Sean Brown. Then add transfer Brian Hine along with big boys Antonio McGhee Danyel Hunter, also tacking on Aaron Sam who earned Preseason All SLC First Team Recognition. This unit is going to be one hard line to crack. As for the team as a whole, the word used to describe them the mo...More >>
  • Tip leads to arrests in Welsh

    Tip leads to arrests in Welsh

    Friday, July 25 2014 10:41 PM EDT2014-07-26 02:41:16 GMT
    Welsh Police make three arrests after getting a tip about stolen items and drugs in a home on Ronald Street.More >>
    Welsh Police make three arrests after getting a tip about stolen items and drugs in a home on Ronald Street.More >>
  • LC Police ticket door-to-door sales people

    LC Police ticket door-to-door sales people

    Friday, July 25 2014 8:38 PM EDT2014-07-26 00:38:11 GMT
    More concerns tonight about door to door salesmen in the area. Two men have been issued citations for selling door to door without a permit. The men claimed to be selling pest control services. It's one of those quiet streets in the University area where people tend to know and look out for each other. So when Loraine Suarez received a knock at the door from someone selling pest control services she was concerned for herself and her neighbors... "When I opened the door this young man kind of...More >>
    More concerns tonight about door to door salesmen in the area. Two men have been issued citations for selling door to door without a permit. The men claimed to be selling pest control services. It's one of those quiet streets in the University area where people tend to know and look out for each other. So when Loraine Suarez received a knock at the door from someone selling pest control services she was concerned for herself and her neighbors... "When I opened the door this young man kind of...More >>

Unwelcome news is hitting working Americans as they discover their pay is being cut by two percent.

It's a result of the end of a payroll tax holiday.

Your 2 percent pay loss is Social Security's gain.

To figure out how much it will cost you, multiply by two percent, .02, by your gross income.

Divide that by 12 to get your estimated monthly loss.

So, if you're making a $30,000 salary, expect $50 less a month. If you're making $60,000, $100 less a month and so on.

"Payroll tax holiday, that's going away … that's gone," said Mike Conway, Liberty Tax Service franchise owner.

Conway said the feds lowered the payroll tax rate in 2011 from 6.2 percent to 4.2 percent to allow people to keep more cash in their pockets.

"It was when our economy went to pot two years ago and they tried to come up with ways to stimulate the economy," Conway said.

But now that the economy is recovering and the fiscal cliff is averted, Uncle Sam will get back to collecting.

"A two percent increase in the Social Security and Medicare tax," Conway said.

Wells Fargo's Teresa Morris said to further cushion the blow, craft a budget with streamlined expenses for fuel, utilities, eating out and entertainment.

"We would encourage them to go in and speak to their personal banker and really come up with a plan that works best for them and their family," Morris said.

Another change is for Social Security and federal benefits recipients.

Starting March 1, paper checks will no longer be issued.

You must sign up for direct deposit or a Direct Express Debit Mastercard.

If these steps aren't taken, be ready for an interruption in the payment.

If you need help switching to electronic payments, call the Treasury's Go Direct Line at 1-800-333-1795.

For those of you just learning of the overall 2 percent cut in pay, money experts recommend that you make immediate spending adjustments to your budget.

KPLC's Britney Glaser will have more on this at 6 p.m.

Copyright 2013 KPLC. All rights reserved. WMC-TV, in Memphis, also contributed to this article.

Powered by WorldNow