The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010



  Employee Social Security Tax Rate Change...and more





The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 became law last Friday, and includes many provisions of interest to employers:

  • A two-percentage-point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid in 2011.

  • Current Income tax rates remain in effect through 2012.

  • Child Tax Credit and Earned Income Tax Credit extended or two years.

  • Educational assistance exclusion extended.

  • Long-term unemployment benefits extended for 13 weeks.

  • Mass transit benefit extended for one year.

IRS Notice 1036 contains the 2011 Percentage Method Tables for Income Tax Withholding and related information, but they do not reflect the expiration of the Making Work Pay credit which expires on 12/31.

These tables will be updated again as soon as they are available.

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1 Comments

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    Jonathan

    The 2% cut for social security is for employee only.  Employer tax stays at 6.2%.

    Mass transit is still $230 for parking and $230 for transit per month with qualified expenses.

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