The recently passed Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 will affect your paycheck in a positive way for 2011 – “more money in your net pay.”
Currently 7.65% of an employees’ gross pay is withheld for FICA taxes (6.2% for Social Security & 1.45% for Medicare). The recently passed Act results in a 2% decrease in the employee withholding for 2011 FICA taxes as the 2011 rate will be 5.65% (4.2% for Social Security & 1.45% for Medicare).
As an example - an employee that earns $40,000 annually will pay $800 less in FICA taxes in 2011 ($40.000 x 2%).
Judy Bertram
Controller's Office
01/06/2011 |