President Obama signed new tax law December 17. We are highlighting two aspects of the law.
1 – Under current law employees pay a 6.2 percent Social Security tax on all wages earned up to $106,800. The new law provides a payroll tax holiday during 2011 of two percentage points. This means employees will pay only a 4.2 percent tax on Social Security. This reduction is only temporary and is set to expire December 31, 2011. This same reduction will apply to the Tier I portion of Railroad Retirement employees.
2 – The Law also includes an additional 13 months of benefits for those drawing unemployment. That 13 month extension will also apply to railroad workers.
Click here to read the tax provisions effecting railroad workers.