Keep an Eye on Congress and Your Paycheck

Americans’ paychecks may shrink next year, at least temporarily, even if Congress decides not to let tax rates rise. Unless Congress votes by November to extend tax cuts enacted under President George W. Bush, the Internal Revenue Service will advise employers to increase deductions from paychecks beginning Jan. 1, payroll experts said. The reason: The IRS needs time to prepare and distribute tables used to calculate withholding taxes, and employers need time to implement them. Even though the Bush-era tax cuts don’t expire until Dec. 31, the bureaucracy has to act sooner. Read more here:

Keep an Eye on Congress and Your Paycheck