Paycheck cuts
Updated: January 5, 2013
CHAMPAIGN -- People were surprised when they opened their first paycheck of the year, because it was much smaller then she expected.
We might've avoided the nation's fiscal cliff, but the plan that got us through is making big cuts to your paycheck.
As of January 1st social security payroll taxes went up two percent. and yesterday- people felt the pain.
Even though it went up - this is the rate we used to pay.
Two years ago - lawmakers gave workers a two percent break on their payroll taxes. The goal was to help boost the economy.
But that two percent is back. It might not sound like a big number. But for those making minimum wage - it's a huge deal.
Nicole Lett is a waitress here at Pia's Sports bar in Champaign.
"It's a fun atmosphere. The people are great, I really enjoy working here," Lett said.
The 30 year old makes minimum wage plus tips, that means each year she makes around $14,000.
"After my monthly bills are paid. That's it," Lett said.
This week life got even harder. A big chunk of her paycheck was gone.
"That's enough right there to pay one bill that you're not gonna have. It's very upsetting," Lett said.
Lett says she'll work that much harder hoping her tips help to make up the difference.
If your salary is $50,000, you'll see about $1,000 come out of your paycheck each year. If you make $75,000, you'll lose about 1,500 every year.
To some that might not seem like a lot.
But for Lett that extra money goes toward her bills. Now she says she'll have to cut corners wherever she can.
"Carpool with somebody. I don't live very far I can walk to work," Lett said.
In the meantime, Lett says she's going to keep working hard and hope it's enough.
"I wish they would just reconsider taking all of this money. Working here, 80 dollars a month is a lot for people who work their butts off every single day," Lett said.
The President is already putting out warnings for another financial disaster, he says if our nations debt ceiling isn't raised the effects could be catastrophic.
Congress has until February to do that.
We might've avoided the nation's fiscal cliff, but the plan that got us through is making big cuts to your paycheck.
As of January 1st social security payroll taxes went up two percent. and yesterday- people felt the pain.
Even though it went up - this is the rate we used to pay.
Two years ago - lawmakers gave workers a two percent break on their payroll taxes. The goal was to help boost the economy.
But that two percent is back. It might not sound like a big number. But for those making minimum wage - it's a huge deal.
Nicole Lett is a waitress here at Pia's Sports bar in Champaign.
"It's a fun atmosphere. The people are great, I really enjoy working here," Lett said.
The 30 year old makes minimum wage plus tips, that means each year she makes around $14,000.
"After my monthly bills are paid. That's it," Lett said.
This week life got even harder. A big chunk of her paycheck was gone.
"That's enough right there to pay one bill that you're not gonna have. It's very upsetting," Lett said.
Lett says she'll work that much harder hoping her tips help to make up the difference.
If your salary is $50,000, you'll see about $1,000 come out of your paycheck each year. If you make $75,000, you'll lose about 1,500 every year.
To some that might not seem like a lot.
But for Lett that extra money goes toward her bills. Now she says she'll have to cut corners wherever she can.
"Carpool with somebody. I don't live very far I can walk to work," Lett said.
In the meantime, Lett says she's going to keep working hard and hope it's enough.
"I wish they would just reconsider taking all of this money. Working here, 80 dollars a month is a lot for people who work their butts off every single day," Lett said.
The President is already putting out warnings for another financial disaster, he says if our nations debt ceiling isn't raised the effects could be catastrophic.
Congress has until February to do that.
