How the Fiscal Cliff will affect your paycheckSubmitted by DJP333 on Thu, 12/27/2012 - 16:31
The Fiscal Cliff is a collection of Federal tax and spending changes that will affect the tax liability of nearly everyone in America. In payroll, potential increases in withholding percentages and the number of allowances you can claim for your tax situation will directly affect your take home pay. To see the potential increase in the amount of federal tax that will come out of your paycheck, select the filing status from your Form W-4 (single or married) and the number of federal allowances you claim. Hover your mouse over the bar that corresponds to your approximate income level. Check the summary bar below the graph to see the estimated impact the fiscal cliff could possibly have on your federal taxes.