After much debate in Washington, President Obama signed HR 3765 into law on December 23, 2011, which provides a two-month extension of the payroll tax reduction that has been in effect for 2011.
A “holiday gift” of sorts, the law means that the employee share of the Social Security tax will remain at 4.2 percent of wages through February 29, 2012 instead of defaulting back to 6.2 percent on January 1, 2012. On average, Americans may have lost about $40 per paycheck if the tax reduction expired. After the first of the year, Congress and the President will consider passing another law to extend this payroll tax reduction throughout 2012.
The law also extends the $33 billion emergency federal unemployment bill and continues Medicare doctor payments at their current rates, both through the end of February.
Sources:
_______________________________________________________________________________________________
All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner of this blog does not endorse any of the information in this blog and it does not reflect the opinions of Austin Financial Group. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.
