In the United States, the tax relief act passed on Dec. 17 included a provision to reduce employees' share of the Social Security portion of payroll taxes from 6.2% to 4.2% in 2011. The self employment tax also changes from 12.4% to 10.4%. This applies on income up to $106,800 and only applies to the social security tax for OASDI (Old-Age, Survivors and Disability Insurance). Employers have until January 31 to make the change to your payroll so the higher payout may not show up in your first paycheck in January. Please be sure your accountant or bookkeeper is aware of this change.
US Social Security Change 2011
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