The Tax Relief Act was signed into law by President Obama on December 17, 2010.
Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.
The new law also maintains the income-tax rates that have been in effect in recent years.
For Year 2011, the employee tax rate for social security is reduced to 4.2%. The employer tax rate for social security remains unchanged at 6.2%.
The IRS asks that employers start using the new social security rate as soon as possible in Year 2011 but not later than January 31, 2011.
For Year 2011 tax tables, please visit
Halfpricesoft.com released the new version of ezPaycheck payroll software which includes the latest new tax tables released by the Internal Revenue Service. These tax tables incorporate the changes introduced by the Tax Relief Act, which was signed into law by President Obama on December 17, 2010.
ezPaycheck payroll software is loaded with intelligent, intuitive features, but not burdened by complicated suites of expensive applications small businesses will never use or need. The software is ideal for owners of small to mid-sized businesses, and was designed and engineered for ease-of-use by those who have only basic computer skills and little accounting know-how.
Learn more about ezPaycheck payroll software at http://www.halfpricesoft.com/index.asp