Payroll Tax Cut....... Or Not?

The proposed budget agreement on Capitol Hill is kind of like a holiday fruitcake; it looks good on the outside, but is it really fit to eat? It sounds good: Social Security withholding will be 2% less for the year. However, the proposal also lets the Making Work Pay (MWP) credit expire for 2011. The Making Work Pay Credit provided a maximum credit of $400 per person or $800 per couple toward federal tax liability. By comparing the numbers, it's clear that this agreement as described actually make taxes higher for a percentage of tax payers.

Team PaycheckCityJun 20, 2011

Looking for a payroll solution?

PaycheckCity Payroll is an easy and affordable way to do your small business payroll. Sign up for a 7-day free trial today.