What is the lastest update on Temporary Payroll Tax Cut for 2012?
Per the IRS, "the temporary payroll tax cut has been extended to Feb. 29. Thus during this time, employees will enjoy a continued tax savings of 2% of wages withheld for Social Security, that is, from 6.2% to 4.2%."
Also, the Social Security wage base for 2012 is $110,100 up from $106,800 in 2011, representing an increase of about 3% from the prior year. This means that once a taxpayer's wages exceed this amount, Social Security will not be withheld however, there will be no limit on the amount of Medicare that will continue to be withheld.