Payroll - Social Security Tax Cut for Tax Year 2011

The 2010 Tax Relief Act reduces the "employee-share" of the Social Security taxes from 6.2% to 4.2% for wages and other compensation paid in calendar year 2011 up to the taxable wage base of $106,800. Employers will continue to pay the 6.2% match for employees Social Security taxes.

Self-employed individuals would pay 10.4% instead of 12.4% towards Social Security taxes based on self-employment income up to $106,800.

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