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Payroll Tax Cut Extended to the End of 2012—Social Security Tax Rate of 4.2%

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February 28, 2012, Volume 58, No. 24

Under the Middle Class Tax Relief and Job Creation Act of 2012, workers will continue to receive larger paychecks for the rest of this year based on a lower social security tax withholding rate of 4.2%, which is two percentage points less than the 6.2% rate in effect prior to 2011, see: 
www.irs.gov/newsroom/article/0,,id=254723,00.html?portlet=107

Contact Penn’s Payroll Tax Department with any questions at (215) 898-6573, 898-7792 or 898-1543.

Almanac - February 28, 2012, Volume 58, No. 24