Monday, December 27, 2010
What the 2% Social Security Tax Cut for Employees Means for Employers
As part of the new tax bill recently signed, employees' share of Social Security tax has been decreased by 2%. This does not apply to Social Security withholding on the employers side. Being this late in the year is makes it exceedingly difficult for employers to implement the change in withholding into their payroll systems, whether by software or by more old fashioned methods. In recognition of this the government is giving businesses until January 31 of next year to get things in order. If an employer is still unable to get it done by that date, they can make an adjustment on their employees' next paycheck.