Payroll Tax Cut Extended Through 2012– February 17, 2012

Congress has extended the 2% cut in Social Security taxes, effective through December 31, 2012. The extension will allow employees to continue paying 4.2% up to $110,100 in wages earned; self-employed individuals will continue to pay 10.4% up to $110,100. The employer contribution towards Social Security will remain at 6.2%. President Obama is expected to sign the measure by the end of the month.

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Notwithstanding that these materials do not constitute legal, accounting or other professional advice, as may be required by United States Treasury Regulations and IRS Circular 230, you should be advised that these materials are not intended or written to be used, and cannot be used by you or any other person, for the purpose of avoiding penalties that may be imposed under federal tax laws. No written statement contained in these materials may be used by any person to support the promotion or marketing of or to recommend any federal tax transaction(s) or matter(s) addressed in these materials, and any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor with respect to any such federal tax transaction matter.