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Reduced social security means more money in your paycheck

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Reduced social security means more money in your paycheck

As part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, the Social Security tax rate has decreased for 2011. Previously, 6.2% of your wages was taken out to fund Social Security¹. But with this new legislation, that rate was lowered to 4.2%. For you and your family, this may mean a little extra each month that can really add up:

¹ Up to $106,800 a year 
² Minus contributions made to Flexible Spending Accounts for medical or child care 
³ Represents the annual increase in take home pay for individuals at these specific incomes

Here is the IRS link for more details: http://www.irs.gov/newsroom/ article/0,,id=232590,00.html