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Payroll Tax Cut Extension

Posted by Mike C Posted on Dec 30 2011
 The President signed the Temporary Payroll Tax Cut Continuation Act of 2011 on 12/23/11 extending the 2% payroll tax cut first introduced under the 2010 Tax Relief Act for employees through 2/29/12. The Act adds a recapture provision for employees who receive more than $18,350 (two-twelfths of the 2012 social security wage base) in wages during the two-month period equal to 2% of the amount over $18,350. The IRS will issue additional guidance and revised forms and instructions, including information on the new recapture provision.