|Published:||Dec 28, 2012 10:35 PM EST|
|Updated:||Dec 28, 2012 11:30 PM EST|
We've told you how you might feel the fiscal cliff in your wallet. Higher federal taxes will mean less take-home pay for you and your family, the uncertainty over a deal in Washington poses a difficult problem for payroll departments.
As both parties met today at the White House to try and reach some kind of deal on the fiscal cliff, Bret Lutsky and his staff at Paychex are in limbo.
"it is a waiting game for us," he said,
Paychex is a third party company that processes employees paychecks for businesses around Southwest Florida.
If we go over the Fiscal Cliff, federal with-holding taxes could rise, but Lutsky and his company still don't know how much they need to take out for next week's paychecks.
"This is going to affect every body across all income brackets," said Lutsky.
So, how much could taxes rise? If we go over the cliff and both the Bush era tax cuts and the Obama tax holiday expire, Americans making more than $100,000 a year would pay nearly $13,000 more in taxes in 2013. Middle income families making between 40- and 64,000 dollars a year would pay nearly $2,000 more.
"I save as much as I can whenever I can," said Taxpayer Joel Ascol say less money from their paychecks will affect them dramatically.
Ascol just graduated and wants to start a busniess, but he says if taxes rise that may be put on hold.
"It is going to make my economical contributions less because I will have less money to spend," he said.
"Obviously for the employees, if they are living pay check to pay check, it could certainly make it a struggle if those taxes do come up," Lutsky.
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