By: Jessica Cihacek
jcihacek@kcautv.com
Democrats and Republicans may hammered out a deal Tuesday night, but workers everywhere, that are taking the hit.
As of January 1st, the FICA tax, or the tax that funds social security taken out every pay period, went back up from 4.2% to 6.2%.
So for someone who earns roughly $20-30,000 a year, like construction workers at L & L Builders in Sioux City? That's about $500 they're not making.
James Mauer, Project Superintendent with L & L, says, "These guys are out here working hard in the weather and it's tough. And it's tough getting by. And now our paycheck just doesn't go as far as it used to."
But employers are saying, "Hey, don't look at us! This is all the federal government's doing."
John Lee, VP Treasurer with L & L, says, "We're competitive with out wages and things, but we can't just boost compensation. It hurts your margins then."
While payroll taxes are critical for funding social security and while the tax break workers have been seeing for the past two years was always meant to be temporary, it's a change that's got employees everywhere measuring their expenses a little more closely.
