While looking at the news today on Yahoo, I cam across this article talking about the Social Security Tax being raised. While people who work for someone will be affected to the people who will be hit hardest are those that are self employed, such as bloggers. Those who work for someone have 1/2 of the % taken out of their check and the other half is paid by their employer, well bloggers and those who are self employed have to pay the full percentage themselves. In 2012 the rate will go up to 12.4%, meaning 12.4% of a self employed person’s income goes straight to Social Security Tax.
While there are some bloggers that do make a large salary from blogging most do not so 12.4% on top of all the other taxes that are paid is quite a bit of money. Then you put in the cost that the bloggers have to keep their sites running, hosting fees, designers, techy people (for those like me who are technologically impaired), domain fees and advertising just to name a few.
What does this mean for bloggers? Well it means that they have to make sure that while they are putting in their 40 plus hours on their blogs that they are also able to afford all the fees and taxes and making enough money to take care of their family, which in turn means that some bloggers will probably have to raise their prices for advertising and change the way they do things to be able to still keep up with their financial needs and their readers informational needs.
Thank you Luxury Living Frugal Style!