Who Got More Money In Their Paycheck This Week?
It’s the 16th of February, so if you’re a W2 employee who gets paid bimonthly (or a W2 employee who gets paid weekly, for that matter) you should now know whether the new tax plan has put a few extra dollars into your paycheck.
As NBC News explains, employers had until the 15th to apply the IRS’s new withholding tables to their payroll — and employees will start to see an increase of 1 to 2 percent per paycheck.
So, if you’re making $56k a year (roughly the median household income for the U.S), you could be seeing around an extra thousand a year in your take-home pay (bear in mind, this all depends on your withholdings, so consult your HR department if you’re unsure).
That’s almost a cost of living raise! It also might be the only raise some employees get, since employers have started giving out bonuses in lieu of raises, even though this was supposed to be the year that we finally saw some wage increases. (I guess this tax benefit counts!)
So if you’re a W2 employee, have you seen an increase in your paycheck? If you’re a 1099er, we might have to have this conversation in, like, April 2019 — we get a few additional deductions this year too, but I’m still putting aside 30 percent of my income for federal and state taxes in 2018. If I end up overestimating and finally getting a tax refund, great!
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