Social Security Tax drops from 6.2 to 4.2 Percent

For 2011, the Social Security tax rate is 4.2 percent for employees, 6.2 percent for employers, and 10.4 percent for self-employed people. These rates apply to earnings up to the maximum taxable amount ($106,800 in 2011).

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced 2011 Social Security tax rates for employees and self-employed people by two percentage points.

Learn more about the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 at the White House website.

www.whitehouse.gov/taxcut

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