• Business owners not happy about payroll tax

    By: Scott Wickersham

    Updated:

    CHARLOTTE, N.C. - Local business owners and their workers are not happy about a 2 percent increase in Social Security payroll taxes that was part of the fiscal cliff deal.

    Managers at Renfrew Hardware in Matthews spent this morning making some changes to their payroll.

    Deductions for Social Security will jump from 4.2 percent to 6.2 percent as lawmakers allowed the tax holiday of the past two years to expire.

    Renfrew Hardware has five employees.

    "We do payroll weekly. We do it here." says owner David Blackley.

    "We will have to recalculate. Call the accountant."

    Paychex branch manager Sean Quinn says their team has been watching the negotiations on Capitol Hill for weeks now and was ready to make a quick change starting today.

    "A $50,000 wage earner will make about $1,000 less to take home in 2013," said Quinn.

    That's bad news to Melody Adams, who started her catering business four years ago.

    She's already struggling to get ahead.

    "I work and pay my taxes. It will affect everyone. We all are hurting out here," said Adams.

    President Barack Obama's affordable health care act also imposes a new payroll tax in 2013.

    It raises Medicare tax by 1 percent on those making over $200,000 a year.


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