Author Topic: 2011 Social Security tax rate reduced  (Read 4751 times)

jakematic

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2011 Social Security tax rate reduced
« on: January 13, 2011, 09:47:03 AM »
I will get my first paycheck of 2011 this week and I just entered the details into Quicken as always.

To my surprise the SS tax went down, and there was more net pay.

Seems odd the government would do that while the SS system is "going broke", and make a slight raise in FIT.

Apparently this year the rate is 4.2% for the first $106,800 for the employee, but the employer rate stays at 6.2%. http://blog.accountingcoach.com/social-security-tax-2011/

Either way I'm glad to have the extra money to put toward saving and preps. Keep an eye on your paychecks!

Offline ncjeeper

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Re: 2011 Social Security tax rate reduced
« Reply #1 on: January 13, 2011, 12:53:25 PM »
Yeah after taxes my take home went up $18 bucks a week from the new rate.

Offline nano.

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Re: 2011 Social Security tax rate reduced
« Reply #2 on: January 18, 2011, 04:57:15 PM »
i think whoever is pulling the strings on that one in Washington was seriously hitting the crackpipe the weekend before...

I don't know how they thought that giving us another $15 in our weekly paycheck was going to magically spark the economy back to life...

but then again it is Washington...

Maybe next go-around we should elect Tyone Biggums as president:



 ;D ;D ;D

Offline nano.

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Re: 2011 Social Security tax rate reduced
« Reply #3 on: January 18, 2011, 04:58:01 PM »
ok. i vented. i feel better now...  :D

jakematic

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Re: 2011 Social Security tax rate reduced
« Reply #4 on: January 18, 2011, 05:42:52 PM »
LMAO.

Yeah that's gonna solve everything. I see it as a free case of beer each check! That goes into storage.

Offline reefmarker

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Re: 2011 Social Security tax rate reduced
« Reply #5 on: January 18, 2011, 06:12:06 PM »
i think whoever is pulling the strings on that one in Washington was seriously hitting the crackpipe the weekend before...

I don't know how they thought that giving us another $15 in our weekly paycheck was going to magically spark the economy back to life...

but then again it is Washington...

Maybe next go-around we should elect Tyone Biggums as president:



 ;D ;D ;D

Because now some politician can say they lowered the SS tax rate by a third.  No one in the media will look at how little difference it makes.

Offline fred.greek

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Re: 2011 Social Security tax rate reduced
« Reply #6 on: January 18, 2011, 07:20:22 PM »
So why CUT the tax?  Maybe the politicians woke up, that every time you raise the SS tax on anyone, you raise the amount that is supposedly owed to them via the SS system.  Reduce the SS tax, and reduce the promised payment. 

Unless they’re also going to cut SS outgo though, they’re going to have to withdraw some money from the “trust fund”.   Payments from the trust fund come out of general revenues… income tax increases, or more borrowing, or actual cuts… somewhere…

Ah, and remember to approach your employer… a 2% drop in your side, might just mean a 2% drop in the employer side of the SS tax (that never shows up on your pay stub).  If the employer side is also dropping, you might want to find out what’s happening to it…

jakematic

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Re: 2011 Social Security tax rate reduced
« Reply #7 on: January 19, 2011, 12:10:05 PM »
Ah, and remember to approach your employer… a 2% drop in your side, might just mean a 2% drop in the employer side of the SS tax (that never shows up on your pay stub).  If the employer side is also dropping, you might want to find out what’s happening to it…

From what I read the employer side is staying at 6.2%.

I have a feeling this is leading up to a "OMG WE GOTS NO MONEY, RAISE TAXES! THINK OF THE OLD PEOPLE!" by the assclowns in D.C.

Personally I'd like to see this as the start of a phase out of the whole thing over the next 5 years.

Offline RacinRob

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Re: 2011 Social Security tax rate reduced
« Reply #8 on: January 19, 2011, 05:23:37 PM »
Worked out to $9 a week, I'll take it!  But really?

Offline Schmidt

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Re: 2011 Social Security tax rate reduced
« Reply #9 on: January 19, 2011, 09:53:50 PM »
From the first page of Publication 15, "Social security and Medicare tax for 2011. For 2011, the employee tax rate for social security is 4.2%. The employer tax rate for social security remains unchanged at 6.2%. The 2011 social security wage base limit is $106,800. In 2011, the Medicare tax rate is 1.45% each for employers and employees, unchanged from 2010. There is no wage base limit for Medicare tax."

The Making Work Pay credit expires December 31, 2010. Which was 6.2% up to 400$ individual or 800$ joint a year.

This puts the break even point at 20k$ and 40k$. So this should be good for most?

Personally I would like to see the Ponzi scheme dismantled entirely. :P



jakematic

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Re: 2011 Social Security tax rate reduced
« Reply #10 on: January 20, 2011, 08:34:19 AM »
Thanks Schmidt - I had not found the IRS (Internal Rape Service) pub.

Agreed. Dismantle it and let me be responsible. I can buy a lot of preps for 10.4%! In the mean time I'll take my $78 a check back and be happy.

Offline Scotty2Hotty

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Re: 2011 Social Security tax rate reduced
« Reply #11 on: January 21, 2011, 09:28:11 PM »
The Making Work Pay credit expires December 31, 2010. Which was 6.2% up to 400$ individual or 800$ joint a year.

Oh I hate the idea of the Making Work Pay credit but I will take the $400...  gonna buy a nice chunk of silver and other PMs.