social security tax reduction

[RitaB]

Yeah, me too

Yes, 6.2% for the employer.........I have busineses who's bookkeepers will now be very confused. They all use to doubled the employee's SS& Med. By the way, it is only the SS not the Med.

I am almost tempted to not tell them anything and put the excess 2% on each employee's FIT. (I said "almost".)

It will take most of the first quarter to show some of my people how to do the math. Yes, I have some business owners (and their payroll clerks) who will be so confused it won't be funny.

I can show them on half a sheet of paper, but they won't get it. And if I tell them to let me figure the deposit for them, they will all be calling me at 3:55 on the 15th, expecting comfort and joy while they don their gay apparel to leave for the day.

Merry Christmas.

[BOB W]

I am almost tempted to not tell them anything and put the excess 2% on each employee's FIT. (I said "almost".)

It will take most of the first quarter to show some of my people how to do the math. Yes, I have some business owners (and their payroll clerks) who will be so confused it won't be funny.

I can show them on half a sheet of paper, but they won't get it. And if I tell them to let me figure the deposit for them, they will all be calling me at 3:55 on the 15th, expecting comfort and joy while they don their gay apparel to leave for the day.

Merry Christmas.

Going a little futher, I have some clients that do their own P/R calculations and Deposits, so I need to give them the news. Others write a standard weekly net pay that is the same every week, I need to work up new net pays for them (about 30 employees). Maybe I will just plug in the 2% into FWT.... And I have several that will not know what I'm talking about and will blame me for this messing up their day.

Merry Christmas to you too.

[JohnH]

Just tell them to add up the employee's SocSec and Medicare withholding, then multipily by 2.35399. The result will be the SocSec and Medicare due for the employee withholding and employer matching amount combined. Then add the Fed W/H to this and they have their correct Fed Tax Deposit. (I think this works for any employee who doesn't max out on SocSec.)

This should keep them scratching their head for most of 2011.

[BOB W]

Just tell them to add up the employee's SocSec and Medicare withholding, then multipily by 2.35399. The result will be the SocSec and Medicare due for the employee withholding and employer matching amount combined. Then add the Fed W/H to this and they have their correct Fed Tax Deposit. (I think this works for any employee who doesn't max out on SocSec.)

This should keep them scratching their head for most of 2011.

That works........... Thanks

[LCP]

looks like we are getting no reduction.

(1) DEDUCTION IN COMPUTING NET EARNINGS FROM SELFEMPLOYMENT.—
For purposes of applying section 1402(a)(12) of
the Internal Revenue Code of 1986, the rate of tax imposed
by subsection 1401(a) of such Code shall be determined without
regard to the reduction in such rate under this section.

Am I interpreting this correctly?

Sorry, I didn't see a clear answer on this .......... will the SE tax be 2 points lower in 2011 or are the self-employed screwed again?