How much will the "fiscal cliff" deal cost you?
By: Marquel Sennet
Updated: January 2, 2013
The country narrowly missed falling over the so called fiscal cliff. But does the deal equal a win for local business owners and their employees?
The deal has some pro's and cons for entrepreneurs. A small percentage of small business owners with "pass through" income above $400,000 dollars will pay higher taxes. Some tax cuts and credits will remain in place.
Celeste Gauthier, owns Strawn's Eat Shop Too" on East 70th Street. She was originally worried about the final outcome. Her main concern was consumers not having as much spending money.
The deal will impact her employees. It didn't include an extension of the payroll tax holiday. To help pay for social security...There was a two percent hike in worker's payroll tax contributions.
Here's a link to the payroll tax calculator:
http://blogs.wsj.com/economics/2013/01/01/payroll-tax-cut-expires-how-much-more-will-you-pay/
Since there wasn't an extension of the payroll tax holiday the average minimum wage full time employee can expect to lose $300 dollars in payroll taxes.
