Social Security Payroll Tax Cut
2/19/2012

On February 17, 2012, the House approved a 10-month extension of the payroll tax holiday, followed by the Senate.  The legislation now goes to President Obama for his signature.   This extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through December 31, 2012. This reduced Social Security withholding will have no effect on employees’ future Social Security benefits.