Utah Payroll Experts Reporting: Employee Social Security Tax Reduced 2% in 2011

The 2011 Tax Relief Act, in an attempt to spur consumer spending, reduces the employee portion of Social Security Tax by 2%. The tax rate for the employee portion of the Social Security is now 4.2%.  However, the employers are not so lucky, the employer contribution remains at 6.2%.  An employee who is making $50,000 annually will receive an additional $1,000 due to this reduction for 2011.

One Response to “Utah Payroll Experts Reporting: Employee Social Security Tax Reduced 2% in 2011”

  1. When an older American plans on working for an extra five years but is laid off, and they start drawing on Social Security (if they’re even old enough to do that), they’re hit with three simultaneous problems: First, their investments and retirement accounts are not yet ready, second, their Social Security income will be substantially lower than it would have been had they waited, and third, they haven’t had to time slash their expenses before their income suddenly drops to only $700-$1300/month, which is often not enough for them to pay their mortgage or rental agreement.

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