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Payroll Tax Cut

December 14th, 2011 at 02:04 pm

I'm not sure if you remember but this past year wage earners had a decrease in payroll tax of 2%. Instead of paying 6.2% in social security tax withholdings, the rate was cut to 4.2%.

This is set to expire at the end of 2011. Congress is attempting to extend this cut. As of yesterday, the bill has passed in the House, but is not likely (per media reports) to pass in the Senate. Feel free to Google your preferred media source for more information.

This is just my heads up to those of you looking at how your net income might look in 2012. Remember to add in an extra 2% in payroll tax witholding as one scenario.

Posted in Taxes | 6 Comments »

6 Responses to “Payroll Tax Cut”

  1. HouseHopeful Says:
    December 14th, 2011 at 02:36 pm 1323873373
    1323873373

    I was JUST thinking about that - not going to be fun.

  2. MonkeyMama Says:
    December 14th, 2011 at 03:03 pm 1323874996
    1323874996

    They will probably cut it, but we won't know for sure until January 1 (if that). I think, if not, a LOT of people will be in for quite a surprise.

    These last minute tax decisions make my job pretty much impossible. I am so aggravated by the whole thing. Either do it or don't. Republicans won't ignore the tax cut because they are concerned about upcoming elections. I will be shocked if they don't pass the tax cut. (Whether they should do it or not is a WHOLE other thing! But all this politics when obviously they are going to cave, is just aggravating me).

  3. ceejay74 Says:
    December 14th, 2011 at 04:08 pm 1323878939
    1323878939

    I couldn't believe they tacked that environmentally horrible oil thing to the payroll tax. Pretty much forcing any conservation-minded legislators to vote against it. Oh well, maybe they'll manage to pass it as a standalone after more grandstanding and name-calling.

  4. creditcardfree Says:
    December 14th, 2011 at 04:33 pm 1323880419
    1323880419

    I despise the politics of all of it. One bill should be one bill. Vote and move to the next one.

  5. Frügal Says:
    December 14th, 2011 at 04:46 pm 1323881200
    1323881200

    Agree with creditcardfree.

    If you guys are concerned about taxes (and anything else, really), check out Ron Paul. Smile

  6. M E 2 Says:
    December 15th, 2011 at 04:32 am 1323923535
    1323923535


    Social Security is running out of funds but hey, let's cut the social security tax by 2% (again) @@ ONLY in America.

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