Employee Social Security rate extended through December 2012
Update: Feb. 21, 2012
With almost two full weeks to spare, Congress on Feb. 17 approved legislation extending the so-called payroll tax holiday through the end of 2012.
That means the employee Social Security tax rate will remain at 4.2% for the rest of the year, and won’t revert to the usual 6.2% rate until after this fall’s elections. President Obama is expected to sign the bill this week.
If Congress hadn’t acted, the old rate would have kicked in again on March 1. The House and Senate ended 2011 with a bitter, partisan fight over extending the 4.2% rate, avoiding a stalemate only by passing a stop-gap measure that covered just the first two months of this year.
In addition to extending the 4.2% employee Social Security rate, the Middle Class Tax Relief and Job Creation Act of 2012 (H.R. 3630) repealed a provision in the December legislation that capped at $18,35...(register to read more)