Soc. Sec. rate Change

[Doc E]

As part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that was recently signed into law, the 2011 Social Security tax rate has been reduced from 6.2% to 4.2% effective January 1, 2011. This 2% decrease reduces applicable Social Security tax that will be deducted from your pay during 2011.

You don't owe 6.2% as has been the case, you owe 4.2%. The employer still pays 6.2% on your behalf. So instead of a total of 12.4% of your wages going to SS, 10.4% does. It is seen as a way to give wage earners a tax break.

t doesn't make much sense to rob from an account that is already paying out more than it is taking in.


.

[Buzz]

As part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that was recently signed into law, the 2011 Social Security tax rate has been reduced from 6.2% to 4.2% effective January 1, 2011. This 2% decrease reduces applicable Social Security tax that will be deducted from your pay during 2011.

You don't owe 6.2% as has been the case, you owe 4.2%. The employer still pays 6.2% on your behalf. So instead of a total of 12.4% of your wages going to SS, 10.4% does. It is seen as a way to give wage earners a tax break.

t doesn't make much sense to rob from an account that is already paying out more than it is taking in.


.

Where did you hear that it's paying out more than it's taking in? That is simply not true. Right now and in prior years it has been running a surplus. With that surplus, there have been government bonds bought with the money and it was spent, partly to finance deficit spending. That's what the social security trust fund is. One thing that has gotten everyone in Washington bent out of shape is that when it does start paying out more than it's taking in, the government will need to make good on those bonds to send money to SS beneficiaries. Where will that money come from? Well, the government through money takes in with taxes will have to pay it back so those drawing SS can get their checks. SS is supposed to be off budget, but making good on those bonds will explode the budget, thus all the panic you're hearing now.

Personally, I think it's a TERRIBLE precedent to set "temporarily" reducing this tax. I think it puts on a clearer path to the destruction of Social Security. And just wait till this "temporary" reduction is supposed to expire. Oh the horror, the government is about to increase your taxes!!!!!!

[luvmylabs23139]

Personally, I think it's a TERRIBLE president

Buzz,
Are you finally seeing the light?

[Buzz]

Buzz,
Are you finally seeing the light?

Nice misspelling huh?

And to be clear, I do NOT think that Obama has been a good president. Maybe I should spell out my reasons sometime. I just get into a mode of defending him, because I think a lot of criticism I've seen is just mud thrown against the wall to see what sticks.

Would precedent work better in the context of my statement above????

[paul young]

10.4% would probably be plenty if the politicians would stop pilfering the fund.

and yes, it doesn't set a good precedent to do this "temporarily".-Paul

[Cody Covey]

how do they calculate the amount given per month? if you make 40000 a year from the time you are 20 until 65 that is only 180000 into ss. that amount of money will only last a couple years...

[hotel4dogs]

wonder why, as an employer, I didn't receive notice of this? Or maybe I did, and, like all communication from the gov't, trashed it without reading it.
Does this mean I'm supposed to be adjusting my withholding?

[luvmylabs23139]

wonder why, as an employer, I didn't receive notice of this? Or maybe I did, and, like all communication from the gov't, trashed it without reading it.
Does this mean I'm supposed to be adjusting my withholding?

2011 circular E should have the information, however who knows if they have printed and mailed them with the correct info for 2011.
It is updated in the online version.
That is available at IRS.gov. It may be listed as publication 15.

[hotel4dogs]

thanks, I'll go take a look

2011 circular E should have the information, however who knows if they have printed and mailed them with the correct info for 2011.
It is updated in the online version.
That is available at IRS.gov. It may be listed as publication 15.

[paul young]

how do they calculate the amount given per month? if you make 40000 a year from the time you are 20 until 65 that is only 180000 into ss. that amount of money will only last a couple years...

the principal is/was supposed to be invested and earn interest over that time, so the 180K contributed SHOULD actually be substantially more.

using your math, in my personal case, that would be about 9 years of benefits.

have you looked at an actuarial table for American males? it ain't a pretty picture. MANY people die before they get even 1 check. check out the obituaries in your local paper. it's pretty sobering...-Paul