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Bracing yourself for a 2% pay-cut - Live5News.com | Charleston, SC | News, Weather, Sports

Bracing yourself for a 2% pay-cut

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(WMC TV) - In the wake of Congress's fiscal "cliff-hanger," most working Americans will experience a 2-percent cut in their take-home pay.

The reason is the congressional negotiations included ending a payroll tax holiday by re-instituting the federal 2-percent payroll tax. The tax, suspended in 2010 to encourage consumer spending, raises revenue for Social Security.

To figure out how much the move will cost you:

* MULTIPLY 2% (.02) TIMES YOUR GROSS INCOME

* DIVIDE THAT BY 12 TO GET ESTIMATED MONTHLY LOSS

Jamie Dexter, corporate communications spokesperson for Wells Fargo & Co.'s Southeast Community Banking, said someone making a $30,000 salary could expect $50 less a month; $60,000 a year, $100 less a month and so on.

In addition to the advice in Andy's story (see video), our banking sources recommend the following FREE web tools for anticipating the pay-cut and financial planning.

* ClearPoint Credit Counseling Solutions Interactive Tools. A terrific one-stop-shop, ClearPoint's Interactive Tools page offers special calculators for building a budget, buying a home, saving for college and paying down debt.

* Wells Fargo's Hands On Banking Course. The online "course" offers videos and step-by-step instructions on money management, retirement planning and responsible use of credit.

* Symmetry Software's  "fiscal cliff" calculator at PayCheckCity.com. It will estimate how much more in taxes you can expect to pay next year based on your filing status, federal allowances and household income. 

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