One of the lesser know tax breaks that was passed yesterday is the reduction in Social Security tax from your payroll checks. Social Security tax is listed as FICA on your paycheck. The rate is going from 6.2% down to 4.2%, which means we can expect to see slightly larger paychecks in 2011.
Although this seems like it will be beneficial to all workers, it has less of an impact on those that earn lower wages. Unlink 2009 and 2010, the reduction in FICA could be significantly less than Making Work Pay Credit workers were entitled to. For more information on how this may affect you read this article.
Although this seems like it will be beneficial to all workers, it has less of an impact on those that earn lower wages. Unlink 2009 and 2010, the reduction in FICA could be significantly less than Making Work Pay Credit workers were entitled to. For more information on how this may affect you read this article.
RSS Feed