Payroll (Social Security) Tax Holiday Extended

Our friends at Ford & Harrison, LLP (labor attorneys) forwarded their newest newsletter with the information that Congress passed the 2% Social Security tax extension bill without waiting until the last minute. Ford & Harrison’s newsletter reads:

Executive Summary: On February 18, 2012, the Senate passed a bill that extends the tax break on the employee portion of the Social Security Old-Age, Survivor and Disability Insurance tax (OASDI) through the end of 2012. The House of Representatives had passed the bill earlier in the week, and it is now awaiting signature by President Obama.

Last week, the House of Representatives and the Senate passed The Middle Class Tax Relief and Job Creation Act of 2012, which extends, for the remainder of 2012, the 2% payroll tax cut that is otherwise scheduled to expire at the end of February. The bill has not yet been signed by President Obama, but he has said that he will sign it.

Thanks for the info, F&H. Very timely! I was concerned about doing another round of Payroll Tax updates to prepare for the end of the Social Security reduction only to go back in a week after they passed the bill and undo what we’d done.

As to Congress, maybe they are getting the idea that we’re tired of their shenanigans and posturing!