Saturday, January 01, 2011

New Year's Baby Present: A Fica payroll deduction cut for most people (not a tax cut)

Just when pundits are saying make Social Security more progressive and maybe means test, the Obama-Dem FICA tax cut of 2 points goes into effect in 2011. Higher wage earners may come out behind, however, because of another “Making Work Pay” initiative.

The story Dec. 19, 2010 by Bambi Hokanson is on Suite101 here.
Here’s an explanation of the “Making Work Pay” credit, under Obama’s name, link here.
Did the FICA takehome tax cut make sense?

1 comment:

Nileema said...

Payroll related work is an extra burden on the HR employees. Payment of salaries to the employees and doing other paperwork is a much headache. But a good payroll software can do this work efficiently.