Bringing Clarity to a Complex World
By: Pam Duffy/ DeJoy, Knauf & Blood, LLP Personal Tax Manager A temporary extension of the payroll tax cut was passed by Congress and signed by the President. Without legislative action the discounted social security tax rate of 4.2% would have reverted back to the normal 6.2% rate On January 1. The compromise agreed to by the House and Senate extends the payroll tax holiday through February 29, 2012. The temporary measure also extends unemployment insurance and Medicare payments to doctors and includes a commitment to go to conference in an effort to negotiate a one-year extension of the payroll tax cut.
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