Take Home Pay Increase!
The social security employee tax rate has been decreased 2%, originally at 6.2%, now reduced to 4.2%. This change in the rate should be implemented ASAP in Jan 2011 by employers. The Wage base for social security is $106,800.
The employer tax rate will remain 6.2% for social security. The medicare tax rate is 1.45% with no wage base limit.
Questions? Contact us at ChappellCPA.