Social Security Tax Rate Change for 2011
January 23, 2011
Effective January 1, 2011 the Social Security tax rate was reduced from 6.2% to 4.2% for working individuals. This decrease will replace the Making Work Pay Credit which offered a maximum credit of $400 on tax returns. The new tax benefit will increase an employee’s net check each pay period. The reduction does not effect the employer’s portion of the tax and will remain at 6.2%.