Employee Social Security Tax Cut for 2011

 On December 17, 2010, the Internal Revenue Service released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011.   Please refer to IRS.gov or your tax advisors for complete details and additional information.

 

 

Employee Social Security Tax Cut for 2011

For 2011, the employee tax rate for social security is 4.2%.  The employer tax rate for social security remains unchanged.  The 2011 social security wage base is $106,800.  The Medicate tax rate is unchanged from 2011.

Employers should implement the 4.2% employee social security tax rate as soon as possible but not later than January 31, 2011.

Solution:

Vertex plans to include the social security tax rate change in an interim update scheduled for December 23, 2011.