MYRTLE BEACH, SC (WMBF) – One out of every two Americans is feeling the effects of an increase in Social Security payroll taxes for 2013, taking an extra 2% out of every paycheck you receive.
"My wife gets her first paycheck of the year, and it's $100 less," said accountant Johnny Fryar. "It didn't sink in this payroll tax would hit her so hard."
Johnny says this tax increase affects almost everyone in the workforce, but says it'll hit lower income families harder.
"A thousand dollars to someone who is going to make $150,000 is just a small amount," he said. "But just compare it to someone who makes $20,000."
But this payroll tax doesn't just affect individuals; it can have a serious impact on small businesses. The more taxes businesses have to pay, the less they can afford to pay their employees.
"It's probably going to cost us one new job that we won't be able to hire," said Phil Pecora, owner of Toffino's in the Market Common. "It's just like the ocean with wave upon wave coming in."
Phil says while it's only a 2 percent increase on overall payroll taxes, compared with everything else it builds up.
"You mention we own the business," he said. "But really we're just employees of federal, state, and local government. We work for them just to pay for all the taxes and fees right now."