CHICOPEE, Mass. (WWLP) - Friday was the first Friday of the New Year; "pay-day" for a lot of people. And there was an unwelcome "pay-day surprise" in this first check of 2013, the net pay was smaller.
The payroll tax holiday expired at the end of 2012, which means you're paying another two percent for your social security tax. This was extremely poor timing especially for workers who hoped for their annual raise to kick in at the start of the year.
Craig Boutin of West Springfield told 22News, "We haven't gotten the raises, but hopefully this year we might. And it might be a three percent raise and, 'POOF!' They're going to take two percent right away. I noticed it already. And it's not even, well, it is 2013, but how did this already happen? I don't get it."
While the "payroll tax expiration" had nothing to do with the fiscal cliff, there are some other complications. Because of the fiscal cliff, the IRS has delayed creating some of the forms that tax preparers need to process tax returns.
Tax preparers tell 22News you can file as soon as you get your W-2, but they can't e-file your return until January 22nd.