Late last Thursday, the House passed an extension of the Bush-era tax cuts, and Friday the bill was signed into law. The $858 billion legislation will keep payroll tax rates for all wage earners at current levels, will maintain the $1,000 per child tax credit, continues the Bush-era reductions in capital gains and dividends taxes through 2012, and extends unemployment insurance benefits through 2011. The passing of this legislation was delayed for quite some time, making it difficult for many people and businesses to stay on top of all the changes. Tom Reahard, CEO of Symmetry Software and paycheckcity.com, says 'We are pleased to bring these updates to our products so quickly. With a lot of hard work and thorough testing, our tax engine and paycheck calculators now include the 2011 tax code changes. This update continues our commitment to accuracy and reliability in payroll calculations throughout our product line.'
What else does the new tax legislation include?
- For those making less than $90,000 a year, the bill provides an extension of the $2,500 credit to help pay for college tuition, which was begun under last year's economic stimulus bill.
- Creates a 2% payroll tax holiday for employees. While the Making Work Pay Credit of $400 per person and $800 per couple goes away, this new credit means employees will pay 4.2% of their income for Social Security taxes instead of 6.2%. This creates a savings of up to $2,136 per employee.
- Small businesses may completely write off any capital investment made from Sept. 9 through the end of 2011.
If you are wondering how these new changes might affect you, try paycheckcity.com calculators to decide if you should adjust your withholding. Trying out different scenarios can lead to even more money in your pocket next year. About Symmetry SoftwareFounded in 1984, Symmetry Software is a groundbreaking innovator in tax applications for the internet and corporate intranets. At its core, Symmetry is a software development firm with a high level of expertise in payroll withholding taxes. Our team of software engineers and taxation experts provide leading edge, regulatory compliant payroll software products.
For more information please visit us at www.symmetry.com. Follow these links for more information about PaycheckCity, private-label Payroll calculators, the Payroll Point Tax Location Service or the Symmetry Tax Engine.
These free resources should not be taken as tax or legal advice. Content provided is intended as general information. Tax regulations and laws change and the impact of laws can vary. Consult a tax advisor, CPA or lawyer for guidance on your specific situation.