On December 17, 2010, the president signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.  While this act was, in essence, a two-year extension of the 2001/2003 Bush-era tax cuts, the Act also reduced the Social Security tax rate on employees to 4.2% (from 6.2%) and reduced the self-employment tax rate from 10.4% (from 12.4%) for 2011 only.  The employer tax rate remains at 6.2%.  Note that the Act did not reduce the contribution base, which is $106,800 for 2011.  Thus, the maximum tax in 2011 for employees is $4,485.60.  This is effective for payrolls beginning January 1, 2011.  As always, if you have questions or concerns, give us a call at the office. 

With the employer quarterly payroll tax return deadline looming, you may be looking for ways to ease your tax burden. The 2010 HIRE Act has several business-friendly tax provisions that may benefit you, including payroll tax provisions for qualified employees. In order to determine if your business qualifies to receive any of these benefits, ask yourself the following questions: Read the rest of this entry »