By now you should have heard/read about Congress and the President signing the Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010 (HR 4853).
Of the many provisions, for 2011, the tax paid by employees towards Social Security will be reduced from 6.2% to 4.2% -- essentially everyone receives a 2% raise in 2011!
Note that the 2% reduction only applies to employees; employers will continue to pay the 6.2% Social Security tax.
The IRS is allowing businesses to implement the reductions by January 31, 2011 because of the late passage of the law.
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