Is Your Employer Withholding Too Much Social Security Tax?

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Is Your Employer Withholding Too Much Social Security Tax?

By The BIDaWIZ Team on January 4th, 2011 at 9:06 pm

By now, we all know that taxes, for the most part at least, will not be increasing as a result of the bush tax cut extension recently signed into law. Working Americans will start to be rewarded with a 33% reduction in Social Security tax or a 2% cut from 6.2% to 4.2%. This means that employers will be taking out less withholding tax from employee paychecks in 2011. The logical question then that arises is should I update my W-4 form to reflect the payroll tax change and how do I know if my employer is following the new payroll tax law? .

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