Social Security tax goes up, Georgia residents see less money in - CBS46 News

Social Security tax goes up, Georgia residents see less money in paycheck

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ATLANTA (CBS ATLANTA) -

A lot of people may be wondering what happened to a chunk of their paycheck.

Social Security tax rates increased by two percent in January.

Terrell Walker took his paycheck to the bank Friday and got a rude awakening.

"It impacted me a lot, because I work hard for my money and I want to see it," consumer Terrell Walker said.

Ace Hardware employee Ed Sugarman felt the impact of less money in his paycheck this week also.

"A lot of people just didn't know what was going on, and I've been able to kind of explain that to some folks," Sugarman said.

That means if you make $30,000 a year, you'll notice $50 less in your paycheck each month and $600 less a year. For someone making $60,000, that equates to $100 a month less in your paycheck and $1,200 less a year.

Financial advisors at Wells Fargo recommend you create a budget and avoid drawing money from your savings. What else can you do?

"If you're in a higher mortgage, possibly refinancing that mortgage to a lower monthly payment; if you have a lot of credit card debt, you can consolidate that debt. Don't continue to spend on the credit cards," Wells Fargo manager Karmon Clay said.

It's a tough financial adjustment for many and one that caught most of us off-guard.

"It just snuck up on me. Even my supervisor didn't even know. She said we paid you, and she showed me the pay stub and stuff, and I'm like where's the rest of the money," Walker said.

Adam's Tips to Save:

1- Take a lunch to work and you'll save between $5-10 a day.  

2- Adjust your IRS withholding to allow you to take home more money each paycheck.

3- Finally scale back on your snack habit and limit the number of coffee or drinks you purchase.

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