12/24/12 - While workers probably won't feel the full brunt of next year's proposed tax increases in their January paychecks, Congressman Mike Rogers says the impact of failing to avoid the so-called fiscal cliff will be a hard hit for most Americans. No matter what Congress does to address the year-end "fiscal cliff," it's already too late for employers to accurately withhold income taxes from January paychecks. But for Howell Republican Mike Rogers, itâs only a temporary reprieve if a deal isnât done. Social Security payroll taxes are set to increase on January 1st, so workers should immediately feel the squeeze of a 2% pay cut. But as talks drag on over how to address other year-end tax increases, the Internal Revenue Service has delayed releasing income tax withholding tables for 2013. As a result, the American Payroll Association says employers are planning to withhold income taxes at the 2012 rates, at least for the first one or two paychecks of the year. (JM)
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