New legislation has reduced the payroll tax rate from 6.2 % to 4.2 % for the first $106, 800 (the maximum subject to FICA tax) of an individual’s earnings. This adds 2% to your paycheck or more than $2000, depending on your income.
This tax cut presents a rare opportunity to contribute to your retirement readiness without disruption to your current cash flow. We encourage you to take the largest portion of this 2% savings you can afford and invest it in your retirement account. You can perform a GAP analysis online, which will show the space between where you are now and where you want to be in your retirement preparation. Even a small additional contribution to your retirement today can have a meaningful impact on the value of your account when you retire.
You can make this investment by going online to your retirement account, consulting with your human resources department or calling us at (781) 756-1804.