In late 2010, Congress and President Obama passed new tax laws that take effect in 2011 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010).
The Making Work Pay tax credit is gone.
As a result, most people will benefit from a cut in Social Security taxes (also known as Payroll Taxes).
Previously, people paid 6.2% toward Social Security. Under the new law, people will be paying 4.2%, a reduction of 2% in their Social Security tax withholding rate.
That is good news for many Americans as it essentially means a 2% increase in your paycheck.
[Read more…] about More Money in Your Paycheck – The Payroll Tax Cut (Social Security Tax Cut)