Payroll tax increase no holiday for Nashville workers - WKRN News 2

Payroll tax increase no holiday for Nashville workers

Posted:
NASHVILLE, Tenn. -

Whether your workplace is an office tower, a construction site or the kitchen of a restaurant, you're likely notice a difference when payday rolls around.

In 2010, President Obama introduced the payroll tax holiday as a temporary measure to stimulate the economy.

It lowered the rate workers pay for Social Security tax by two percentage points, from 6.2% to 4.2%.

However, now the vacation is over for workers. The payroll tax holiday ended with the New Year.

That means for every $1,000 in income, an additional $20 will be taken out for Social Security taxes.

Many families will have to make adjustments to their budgets.

"[We will have to cut] our fun activities, just our family and going out and our fun money for weekends," said Jennifer Hout, who was enjoying a day at Centennial Park with her daughter.

"I might have to cut down on some of those extra trips to the movies," said Cora Malanga, a Junior at Belmont University.

"No more Starbucks," Malagna added with a laugh.

According to the Tax Policy Center, 125 million households will be affected by the payroll tax increase.

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