contact wrote the following post on 1/12/2011 7:11:20 PM
For Year 2011, the employee tax rate for social security is reduced to 4.2%. The employer tax rate for social security remains unchanged at 6.2%.
IRS asked that employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011.
IRS said “Millions of workers will see their take-home pay rise”.
More information on Year 2011 Payroll Tax Cut can be found at:
http://www.halfpricesoft.com/business-blog/post/2010/12/30/QA-on-Year-2011-Payroll-Tax-Cut.aspx
However, we found some employees got SMALLER not bigger paychecks because of the federal tax rate change.
Have you or your employees seen bigger paychecks?
Thanks,
Karen