While this seems like an oxymoron this very well could happen. Congress has decided that their jobs are more important than your household budget and has decided to delay voting on extending any part of the Bush tax cuts until after the November elections.
The only problem with delaying the vote until late November or December is that the IRS does not have enough time to revise the payroll tax tables and get them out to employers.
The weird result of this is that while your tax rates may not increase in 2011, your net payroll check in early 2011 could be less since your employer would have to withhold at the pre Bush tax rates, while your employer waits for the revised tax tables from the IRS.
To read more on the article from Wallet Pop’s website by Sarah Coffey please click the following link Paychecks could shrink if US tax vote doesn’t happen.
This article was written by Jay Kossen, CPA at Numerico, PC. Click here to view Numerico’s website.
