Payroll tax cut continues

Pyronale Team Österreich

Celebrate! The Feds aren't raising your taxes this week.

President Obama signed the next payroll tax cut into law.  This means that you will continue to pay 2% less social security tax for the remainder of this year.

The tax cut amounts to about $80/month for an employee earning $50,000 a year, and as much as $2200/year for better-paid employees.

Self-employed taxpayers will enjoy a similar savings in self-employment tax.

Note the euphemistic use of the word cut.  This cut isn’t really a reduction from last year.  Rather, it is a decision not to raise your taxes by 2% on March 1.

[Image: Pyronale Team Österreich by Jule_Berlin, on Flickr]

About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

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