Wipfli Alerts & Updates: Extension of Payroll Tax Holiday!
February 28, 2012
(PDF 102 kB)
On Wednesday, February 22, 2012 President Obama signed the payroll tax holiday extension into law. American workers will continue to pay 4.2% of their wages into Social Security, versus the typical rate of 6.2%. This measure maintains a lower payroll tax rate through December 31, 2012. Previously, the payroll tax holiday was extended for an additional two months, through February 29, 2012. Without this extension, the payroll tax would have reverted to 6.2% on March 1. The 2% reduction applies to an employee whether they receive wages or are self-employed but does not apply to the employer portion of FICA.
Click here to sign up to receive future "Wipfli Alerts & Updates" email communications as they are released.