Payroll: Social Security at 4.2% for Employees for all of 2012

published March, 2012

The reduction of “employee” social security tax from 6.2% down to 4.2% was with us for 2011, and they’d put it in place for the first two months of 2012—well, in late February, they made the reduction last all year—all of 2012…at least until further notice!

If you’re self-employed, or a partner or member in an LLC, your rate will “remain” at 13.3% for 2012, just like it was for 2011.

Try not to spend your 2% raise all in one place.