2012 Social Security Payroll Tax Changes
The SSA (Social Security Administration) has announced that the 2012 employee social security rate will increase to 6.2%, up from 4.2% in 2011. This will mean more social security tax clipped from your paychecks. You will pay this tax on the first $110,100 in wages you receive in 2012. This figure is also up from the previous wage limit of $106,800.
Last year if you made $110,000, you paid $4485.00 in social security tax. Under the new announcement you will be paying $6820.00 -- a SIGNIFICANT increase.
As a side note, this has been the subject of great political debate over the last few months. Republicans claim to oppose any tax increase while Democrats have urged repeatedly for Republicans to help them pass an extension of the existing 4.2% rate. At this time, no action has been taken.
Without political action, this post will stand.