Payroll Tax Cut

Payroll Tax Cut to Boost Take-Home Pay for Most Workers

 

Social security and Medicare tax for 2012. The employee tax rate for social security is 4.2% on wages paid and tips received before March 1, 2012. The employee tax
rate for social security increases to 6.2% on wages paid and tips received after February 29, 2012 was extended by Congesss in Feburay 2012 The employer tax rate for social security remains unchanged at 6.2%.
The social security wage base limit is $110,100. The Medi- Get forms and other information care tax rate is 1.45% each for the employee and emfaster
and easier by: ployer, unchanged from 2011. There is no wage base limit for Medicare tax.

Employers should implement the 4.2% employee social security tax rate as soon as possible, but not later than Jan 10, 2012


After implementing the 4.2% rate, Employers should make an offsetting adjustment in a subsequent pay period to correct any overwithholding of social have a fee.
security tax as soon as possible, but not later than March 31 2012

 

IRS-2012