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3 ways to help employees prepare for future tax increases

Despite last week's fiscal cliff fix, employees need to be educated - and ready - to take action to protect themselves from the likelihood of higher costs in 2013.

By Liz Davidson | Updated on January 11, 2013

Last week’s events on the Hill may have brought some short-term solutions, but the problems are far from over. Sentiments of dissatisfaction and fear persist around the compromise reached by Congress to avoid the so-called fiscal cliff. It appears economic uncertainty remains the key theme going into 2013.

The deal, for now, will keep ordinary income tax rates steady on taxable income under $400,000 for single filers and $450,000 for joint filers, but will increase the tax rate on incomes in excess of these amounts. It also suspends automatic spending cuts to the Pentagon and domestic programs for two months, allowing lawmakers a chance to regroup before addressing the issue of spending cuts on things like the military, Medicare, and other government benefit programs.

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