On Friday, February 17, 2012, the House of Representatives and the Senate both passed legislation to extend the 2% cut in the employee portion of FICA taxes through the end of 2012. Previously the 2% cut was set to expire on March 1, 2012. The Bill is now to the White House for President Obama’s signature, which he is expected to sign in the coming days. While the employee portion of the FICA tax has been cut by 2%, employers do not receive the same benefit and must continue to pay the full amount.
In addition to the extension of payroll tax cuts, the legislation also extends federal unemployment insurance benefits and prevents scheduled cuts to Medicare providers through the end of 2012.
If you have any questions regarding this newsletter or any other recent tax issues, please call us at (636) 498-1900, (314) 892-6700, or (573) 756-6400.
Your Professional Team
RFC Advisors, LLC