Announcement

The uncertainty has ended

Feb 23, 2012

The employee payroll tax holiday has indeed been extended through December 2012. This means that the total rate of employee FICA withheld will remain at 5.65% through 12/31/2012 (4.2% for Social Security plus 1.45% for Medicare).

The total rate of employer FICA match will remain steady at 7.65% (6.2% Social Security plus 1.45% Medicare).

Employers--make sure to use the correct rates when calculating payroll.

Employees--make sure the correct rates are being deducted from your paychecks.