President Obama signed the next payroll tax cut into law. This means that you will continue to pay 2% less social security tax for the remainder of this year.
The tax cut amounts to about $80/month for an employee earning $50,000 a year, and as much as $2200/year for better-paid employees.
Self-employed taxpayers will enjoy a similar savings in self-employment tax.
Note the euphemistic use of the word cut. This cut isn’t really a reduction from last year. Rather, it is a decision not to raise your taxes by 2% on March 1.
[Image: Pyronale Team Österreich by Jule_Berlin, on Flickr]