Link: UCOP's e-newsletter

Stay Informed. Stay Connected.

Social Security witholding rate reduced in 2011

On December 17, 2010, President Obama signed into law the Tax Relief Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Included in the Act is a provision that reduced the social security withholding rate from 6.2% to 4.2% for 2011. This change is effective with paychecks (and direct deposit) issued on or after January 1, 2011.

Because the law was enacted so close to the end of the calendar year, the IRS has given employers until January 31, 2011 to implement this withholding change. For UCOP employees, the new withholding rate will become effective with the Bi-weekly pay date on January 5, 2011.

Because the change was not implemented in time to affect the January 3, 2011 paycheck, monthly employees paid on that date were subject to social security withholding tax at the old rate (6.2%). Employees will be refunded the difference in their next paychecks.

Leave your comment here