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Accounting Principals Workonomix 2013 Survey Results

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American workers are earning $130 less per paycheck due to the 2013 payroll tax increase. In our 2013 Workonomix survey, we took a look how and where Americans are cutting back in their spending.

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Accounting Principals Workonomix 2013 Survey Results

  1. 1. March 13, 2013Accounting PrincipalsWorkonomix Survey 2013
  2. 2. Survey Background & MethodologySlide 2*Note: Not all respondents answered all questions. Each question is marked with its respective base size in the footnotes of each slide.Background• Accounting Principals polled 1,020 working Americans about the impact of the changesto the payroll tax, their spending habits, and their likelihood to work with an accountantin 2013.Methodology• This telephone survey was conducted by Braun Research on behalf of AccountingPrincipals among a nationally representative sample of 1,020 employed Americansaged 18 and older.• The survey was fielded between February 15th and 19th , 2013.• Results have a margin of error of +/- 3.1% at the 95% confidence level.
  3. 3. Slide 3Working Americans are taking steps to deal witha reduced paycheck• The payroll tax changes that took effect January 1, 2013 have a big impact on working Americansand as a result, many are cutting back on expenses. On average, working Americans are taking home $130 less per month. As a result, their social life is suffering the most. Many have been forced to cut back on going out tobars and restaurants (20 percent) and eating lunch out (19 percent). Interestingly, nearly one quarter (22 percent) of working Americans have not cut back on their spendingat all.• For American workers, retirement funds are no longer just for retirement. Over a quarter (28 percent)of the American workforce has prematurely pulled from their 401(k). American workers are tapping into their savings to cover a number of expenses including unexpectedhealthcare costs (25 percent), home or car repair (27 percent), and needing money duringunemployment (22 percent).o Men (29 percent) are nearly twice as likely as women (15 percent) to cite unemployment as thereason for prematurely taking money out of their retirement fund. Interestingly, there is a notable subset of Americans who are willing to pull from their retirement funds fornonessentials. Nearly two in 10 (16 percent) working Americans said they have used their 401(k) forleisure expenses such as remodeling, buying a second home, buying a boat or vacationing.
  4. 4. Slide 4Workplace spending is tough for Americans to avoid• Working Americans need to spend to make it through the day. The majority (82 percent) of the Americanworkforce buys coffee regularly to the tune of roughly $20 a week, and 89 percent eat lunch averaging morethan $35 a week.• Money spent on coffee and lunch by working Americans has remained consistent year over year. Working Americans spent an average of $21.32 on coffee and $36.17 on lunch in 2013. Working Americans spent an average of $21 on coffee and $37 on lunch in 2012.• Younger working Americans are especially likely to buy on the go items like coffee and lunch during the workweek compared to their older counterparts. Four in 10 (40 percent) working Americans age 25-34 say they spend $21 or more per week on coffeecompared to just 11 percent of workers age 55-64. Working Americans age 25-34 are also far more likely to spend the most on lunch. Over four in 10 (44percent) spend more than $41 per week on lunch compared to only 16 percent of those age 55-64.• When it comes to spending at work, food continues to be Americans biggest drain on their wallet. Themajority of Americans (65 percent) say going out to lunch or buying snacks is their biggest spending pitfallat work.• Half (51 percent) of working Americans say eating lunch out is their biggest spending pitfall while on the job,compared to other spending on happy hours (5 percent) and shopping during work (8 percent).• Snacking is the biggest pitfall for 14 percent of working Americans. Snack attacks are also more likely to affect older workers than younger – 21 percent of those ages 55-64 saybuying snacks is their biggest spending pitfall at work while just 10 percent of those ages 25-34 admit to this.
  5. 5. Slide 5Many are paying more attention to where their moneyis being spent• Americans are willing to shell out dollars to make sure they get the most from their tax returns.• More than four in 10 (44 percent) working Americans will go to an accountant to prepare their taxes thisyear, primarily because they want the biggest refund possible. Over half (53 percent) said they won’t dotheir own taxes this year because they want to make sure they get the biggest refund. Men (52 percent) are more likely than women (44 percent) to do their own taxes in 2013, whilewomen (47 percent) are more likely than men (41 percent) to go to an accountant.• Tread carefully when asking coworkers to buy stuff on behalf of your kids; not all workingAmericans are happy to open their wallets on the job.• Americans have a love-hate relationship when it comes to supporting your kid’s fundraising pursuits.While nearly one quarter (24 percent) of working Americans will buy anything your kid is selling such ascookies, wrapping paper and popcorn, 27 percent hate being asked to buy products from your kidsbecause they feel pressured to buy it or they don’t need the product. The remaining 49 percent ofAmericans will only consider buying a product if they like it.• Income plays a role in working American’s willingness to buy from colleagues. Those at lower incomelevels are less willing to buy a product if asked. Only 16 percent of those who make between $30K-$50K say that if they are asked, they will buy itversus 28 percent of those earning $75K-$100K and 25 percent for those making $100K or more.
  6. 6. MAIN FINDINGSWorking Americans are taking steps to deal with a reduced paycheckSlide 6
  7. 7. Slide 7Payroll Tax Increases are Affecting American’s Social LifeQ10) Given the payroll tax changes that took effect January 1, 2013, after taxes, how much less money are you taking home per month? (N=989)Q11) Which of the following, if any, have you cut back on MOST since your paycheck was reduced due to payroll tax changes on January 1, 2013? (N=1020)Which of the following, if any, have you cut back on MOST since yourpaycheck was reduced due to payroll tax changes on January 1, 2013?Nearly one quarter (22 percent) of workingAmericans have not cut back on their spending at all20122013On average, working Americans are taking home$130 less per month as a result of thepayroll tax changes.Men (7 percent) are twiceas likely as women(3 percent) to cut back oncontributing to theirretirement since theirpaychecks were reducedby payroll taxes.Women (16 percent) aretwice as likely as men(7 percent) to cut back onspending money on clothesas a result of the newlyinstituted payroll taxes.
  8. 8. Slide 8Retirement Funds are No Longer Reserved for RetirementAmerican workers are tapping intotheir retirement savings to cover:HealthcareCosts25%Home/CarRepairs27%UnemploymentExpenses22%Q4) Have you ever prematurely taken money out of (i.e. cashed out/borrowed against) your retirement fund (i.e. 401(k) or IRA)? (N=1020)Q5) Which of the following, if any, are reasons why you prematurely took money out of your retirement fund (i.e. 401(k) or IRA)? (N=1020)Over a quarter (28 percent)of the American workforcehas prematurely pulled fromtheir 401(k).28%
  9. 9. Slide 9Some Working Americans Treat Themselves at theExpense of their Retirement FundsQ5) Which of the following, if any, are reasons why you prematurely took money out of your retirement fund (i.e. 401(k) or IRA)? (N=1020)Nearly one in six (16percent) working Americanssaid they have used their401(k) for leisure expensessuch asremodeling, buying asecond home, buying aboat or vacationing.There is a notable subset of Americans who are willing to pull from their retirementdollars for nonessentials expenses.Which of the following, if any, are reasons why you prematurely tookmoney out of your retirement fund (i.e. 401(k) or IRA)?
  10. 10. MAIN FINDINGSWorkplace spending is tough for Americans to avoidSlide 10
  11. 11. Slide 11Food is the Biggest Drain on American’s WalletsQ3) Which of the following, if any, is your BIGGEST spending pitfall at work? (N=1020)Which of the following, if any, is your BIGGESTspending pitfall at work?The majority of Americans(65 percent) say going out to lunch orbuying snacks is their biggestspending pitfall at work.Snacking is the biggest pitfall for14 percent of working Americans.Snack attacks are also more likely toaffect older workers than younger –21 percent of those ages 55-64 saybuying snacks is their biggestspending pitfall at work while just 10percent of those ages 25-34 admit tothis.
  12. 12. Slide 12Working Americans Need to Spend on Foodto Make it Through the DayThe majority (82 percent) of the American workforce buys coffee regularly to the tune ofroughly $20 a week, and 89 percent spend an average of more than $35 a week on lunch.How much money do you spend per week on…?Q1) How much money (in dollars) do you spend per week on coffee? (N=1020)Q2) How much money (in dollars) do you spend per week on lunch? (N=1020)$$$$$$$$$Four in 10 (40 percent) working Americans age 25-34 say they spend $21 or more per week on coffeecompared to just 11 percent of workers age 55-64.25-34 40%$$$$$$$$$35-44 24%$$$$$$$$$45-54 17%$$$$$$$$$55-64 11%Younger working Americans are much more likelythan their older counterparts to spend $21 or moreper week on coffee.Money spent on coffee and lunch by workingAmericans has remained consistent year over year.
  13. 13. MAIN FINDINGSMany are paying more attention to where their money is being spentSlide 13
  14. 14. Slide 14Americans Will Shell Out Dollars to Make SureThey Get the Most from their Tax ReturnsMore than four in 10 (44 percent) working Americans will go to an accountant toprepare their taxes this year, primarily because they want the biggest refund possible.How do you plan to/did you prepareyour taxes in 2013?Why didnt/wont you do your own taxes in2013?Q6) How do you plan to/did you prepare your taxes in 2013? (N=1020)Q7) Why didnt/wont you do your own taxes in 2013? (N=519)
  15. 15. Slide 15Think Twice Before Asking Your Coworker to Buy Somethingfrom YouQ8) What do you do when colleagues ask you to buy things their children are of their children (i.e. cookies, wrapping paper, popcorn, etc.)? (N=1020)Q9) How do you feel about buying products that coworkers are selling on behalf of their children (i.e. cookies, wrapping paper, popcorn, etc.)? (N=1020)Income plays a role in working Americans’ willingness to buy from colleagues. Those at lowerincome levels are less willing to buy a product if asked.Tread carefully when asking coworkers to buy stuff on behalf of your kids; Americans have alove-hate relationship when it comes to supporting your kid’s fundraising pursuits.Nearly one quarter (24 percent)of working Americans will buyanything your kid is selling, suchas cookies, wrapping paper andpopcorn.Nearly half (49 percent) ofworking Americans will onlyconsider buying it if they like theproduct.However, 27 percent hate beingasked to buy products for yourkids because they feelpressured to buy or they don’tneed the product.
  16. 16. March 13, 2013Accounting PrincipalsWorkonomix Survey 2013

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