Good News – Payroll Tax Cut Extended through 2012!

Congress gave all wage earners a short-lived 2012 reprieve by temporarily extending the 2% payroll tax cut though February of 2012.

The payroll tax, frequently referred to as FICA or OASDI on your paycheck, has historically been 6.2%. This is the tax that funds the Social Security Administration. For 2011, as an economic stimulus measure, Congress temporarily reduced the rate to 4.2%. They also provided self-employed individuals with a corresponding two percentage point reduction by lowering the Social Security portion of the SE tax from 12.4% to 10.4%.

Congress had previously extended this 2% tax cut and now has decided to continue this reduction in payroll tax through the end of 2012.

Steve Trojan, CPA is owner of Complete Payroll, Inc. (, a Crystal Lake payroll company, and SMT & Associates, Inc. (, a Crystal Lake tax and accounting firm. Complete Payroll offers a full range of payroll services to Illinois and Wisconsin small businesses.


About strojan

Complete Payroll offers full service payroll processing for businesses in Illinois and Wisconsin. We offer direct deposit, online payroll, tax impounding, timeclocks, and 4o1(k) plans. We are a local company with GREAT service and support.
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