Today, as I was reviewing my blog statistics, I noticed that several people found my blog by typing in the term “Social Security Tax Credit.”
As far as I know, I don’t believe there is such a thing as a Social Security Tax Credit. I apologize up front if you found this post because you typed that in! I just thought I should clear up this misconception. Someone please let me know if I’m mistaken…
There is a Social Security / Payroll Tax Rate issue currently in the news that I believe is causing these searches.
The Temporary 2012 Payroll Tax Cut Extension, which was a 2 percent reduction to Social Security taxes withheld, was allowed to expire at the end of 2012.
Beginning January 1, 2013, employers must now withhold 6.2% for Social Security from workers’ wages. For the past two years, this was set at 4.2%.
It was an item up for debate as part of the Fiscal Cliff Deal around the new year, but this bit of payroll tax relief benefit did not get included in the final deal.
I hope that answers your question.