February 23, 2012
Payroll Tax Cut Extended Through 2012
The 2 percent payroll tax cut in effect for 2011 has been extended through 2012. The legislation, passed in February, continues the reduction of the Social Security tax withholding rate (from 6.2 percent to 4.2 percent), resulting in 2 percent more take-home pay for most American workers. Directing that additional 2 percent into a workplace retirement plan could be an easy way to save more for retirement. For more information, visit irs.gov.