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%.