Payroll Tax Cut Like to Expire

As you may recall, last year a payroll tax holiday was passed by Congress lowering the amount of Social Security tax paid by employees making less than $110,000 from 6.2% to 4.2%.  This tax cut is set to expire at year end and it seems unlikely that it will be extended.  This will cause a drop in most employee’s net pay.  For example, an employee making $50,000 will take home $1,000 less in 2013 than they did in 2012.

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