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Saturday, May 14, 2011

Special 2011 FICA Tax Rate due to Payroll Tax Break

Special 2011 FICA Tax Rate due to Payroll Tax Break ; As part of the deal Obama forged to extend unemployment benefits at the end of 2010, not only did tax rates stay the same across the board, but he also enacted what amounts to a substantial stimulus package by way of reducing the FICA rate by 2% to 4.2% for employees. In effect, this is a 2% bonus to all workers up to the cap of $106,800.

Another noteworthy item for the 2011 FICA Tax Cap is that again, for the third year, the cap remains the same, at $106,800. Even though commodity prices are skyrocketing, healthcare costs are rising, and virtually everything else we routinely buy now costs more than it did a year ago, the inflation index the government uses didn’t warrant an increase. So, at least in that regard, Americans got a bit of a break – if it matters (only to 6 figure earners really, since below the threshold you pay the full 4.2% this year regardless).www.darwinsfinance.com... For the latest updates PRESS CTR + D or visit Stock Market news Today

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