Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
Except for pretax medical and tax-free , all wages are subject to the 1.45% Medicare portion of FICA, since no wage base applies to Medicare. (SSA Fact Sheet, 10-19-11)
2012 Social Security tax rates up in the air
The one-year decrease in the employee Social Security tax rate—to 4.2%, from 6.2%—is scheduled to expire at the end of this year.
However, President Obama’s proposed American Jobs Act of 2011 would lower the employee Social Security tax rate further, to 3.1%, for 2012.
The Senate recently voted down the legislation, so it’s not...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Small Business Tax Deduction Strategies
- Must we hand over final paycheck, or is it OK to put it in the mail?
- Employer not liable for acts by independent security staff
- Breaks for nursing mothers: Just for nonexempts?
- Court OKs PTO for exempt employees' partial-day absences