Important & Affects All

March 16th, 2012

Important and affects ALL employers…

For those employers handling their own payroll, and just for information’s┬ásake! On February 22, 2012, President Obama signed the Tax Relief Act of 2012, which extends the 2 % reduction of social security tax rate paid by employees from 6.2 to 4.2 %, through the end of 2012.

So whether you agree with it or not, you need to make sure you keep on retaining just 4.2% of your employees paychecks.

Employees: If you can, and your personal situation allows, this would be a great opportunity to make an automatic savings plan with that 2%.

Comments

  1. this is great info but what happens if you retained 6.2 not 4.2 in 2012? i think we did that!

    • paulauribe says:

      Hi Fernanda! Sorry for the late reply… I’m not exactly sure what happens, the IRS hasn’t notified you? Technically it should be reimbursed to the employees. I would consult with your CPA or current payroll specialist.