Sixty-seven percent of employees live paycheck to paycheck, according to the 2013 “Getting Paid In America” survey recently conducted by the American Payroll Association. The results show a one percent decrease from 2012 survey results and a three percent drop since 2011.
“This is very positive trend for America’s workers and their families,” said Dan Maddux, executive director of the American Payroll Association.
The annual survey asked respondents how difficult it would be to meet their current financial obligations if their paychecks were delayed for a week. More than 21,800 of the 32,799 respondents, 67 percent, said they would find it somewhat or very difficult to meet their financial obligations if their paychecks were delayed. This is down one percent compared to 2012 results for the same question and down three percent compared to 2011 results.
As a majority of employees continue to live paycheck to paycheck, getting the most of every paycheck has become vitally important for families. Payroll-related tools and benefits are increasingly becoming keys to help employees maximize their paychecks and budget for everyday expenses. One such tool, Flexible Spending Accounts, allow employees to save up to 35% on dependent care and medical costs.
“With the individual mandate of the Affordable Care Act taking effect in 2014, the financial advantages for employees to set up a medical flexible spending account are all the more meaningful,” said Kevin Hill, Paychex vice president of insurance and Human Resource Solutions services. “As we quickly approach open enrollment season, now is the perfect time for individuals to review their annual medical expenses and re-evaluate their use of an FSA to ensure they’re reaping as many benefits as possible.”
The American Payroll Association offers free tools to help employees understand their paychecks and make smart financial decisions on how they’re paid. Workers will soon be able to download a free e-book, “Understanding Your Pay,” and a W-4 assistant to help them properly fill out Form W-4 and potentially add hundreds of dollars to their paychecks at www.nationalpayrollweek.com .
From: American Payroll Association
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