Where's My Payroll Tax Cut?
Here's why your paycheck may not have risen as it should have in January.

My husband, who gets paid monthly, noticed that his January paycheck wasn't any larger. "Wasn't I supposed to start seeing a bigger check because less money would be withheld for Social Security?" he asked (see Tax Cut Help for the Math Challenged).
Part of the tax deal hammered out in late 2010 was a two percentage point cut (from 6.2% to 4.2%) in the employee share of the Social Security tax. The lower rate was supposed to kick in in January. But not all employers had enough time to reprogram their payroll systems. Apparently my husband's employer was among those that didn't get their systems updated in time for January paychecks.
The IRS has given employers until today (January 31) to make the necessary changes. So if you didn't see a tax cut in your January paycheck, you should see twice as much added back to your February paycheck to correct for overwithholding in January. Use our calculator to see how much your paycheck will rise each month -- and double that amount for February if you didn't see the tax cut in January.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you don't see a change to your February paycheck, talk to your human resources department. Don't assume that your income is too high for the payroll tax cut. This cash-to-taxpayers stimulus applies to workers at all income levels -- unlike the Making Work Pay credit, which phased out as income rose between $75,000 and $95,000 for single filers and between $150,000 and $190,000 for couples who filed joint returns.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.
Cameron Huddleston wrote the daily "Kip Tips" column for Kiplinger.com. She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.
-
Over 50 and Still Paying Student Loans? Here's Some Help
It's the club no one wants to join. But if you are over 50 and still paying student loans, there are ways to tackle both debt and retirement savings.
-
Eight Estate Planning Steps to Protect Your Loved Ones (and Your Legacy)
Two-thirds of Americans don't have an estate plan. If you're one of them, these are the essential steps to take now to prevent problems for your family later.
-
Homeschoolers: 529 Plan Savings Could Soon Work for You
Savings Accounts A new House GOP bill could change how you save for your child's homeschool education. Find out how.
-
Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High Prices
State Tax Ohioans won't want to miss out on savings as pressure from tariffs spikes prices.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the Senate
Tax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers Qualify
Tax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025
Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
New 'No Tax on Tips' Bill Approved: What to Know Now
Income Taxes Will you stop paying taxes on your tip income this year?
-
Millions Could Lose SNAP Food Benefits Under Trump Tax Cut Plan
Tax Policy The House Agriculture Committee approved nearly $300 billion in cuts to SNAP benefits, putting many at risk of hunger.
-
Missouri Leads Capital Gains Tax Repeal: Will Your State Follow?
State Tax As one state becomes a test case, policymakers and taxpayers across the U.S. will be watching closely to see what happens next.