From Barbara Weltman: The President has proposed a massive new jobs act, and Congress is now considering what to do with it. Here is what the provisions in the jobs act could mean to you, both personally and for your business.
1. Tax holiday for workers
Whether you are an employee of your corporation or self-employed, you are currently enjoying a two percentage point reduction in Social Security taxes. This 2011 tax break represents a savings of more than $2,000, depending on your earnings. The tax holiday does not diminish the Social Security credits you earn and what you will receive when you retire.
The President has proposed that the current holiday be expanded for 2012. The proposal would cut the Social Security tax rate in half, from 6.2 percent to 3.1 percent. The Social Security Administration has not yet released the wage base for 2012, which ...
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