Payroll Tax Reduction Still Up In the Air

After the Senate passed an extension of the 2% employee payroll tax reduction for the first two months of 2012, the House apparently is set to reject it.

The employee share of Social Security tax withholding has been at a reduced 4.2% for 2011, which is down from the typical 6.2%. Under the Senate-passed measure, it will remain at 4.2% until the end of February, unless Congress acts again to extend it. If the House rejects it, it will set up a showdown and risk the reduction’s expiration at the end of December.

Employees’ share of Medicare taxes has remained unchanged at 1.45%.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s