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. (www.completepayrollinc.com), a Crystal Lake payroll company, and SMT & Associates, Inc. (www.smt-associates.com), a Crystal Lake tax and accounting firm. Complete Payroll offers a full range of payroll services to Illinois and Wisconsin small businesses.

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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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