Payroll tax reduction.

[PIGLEE]

I got this from The Tax Book Update Service.
On page 6 Section VI, it states that Self Employed Individuals will pay only 10.4% instead of 12.4% for 2011 (one year). So....... Self employed get the reduction also, but it will be on the tax return.

[DaveO]

I got this from The Tax Book Update Service.
On page 6 Section VI, it states that Self Employed Individuals will pay only 10.4% instead of 12.4% for 2011 (one year). So....... Self employed get the reduction also, but it will be on the tax return.

I read that but the Schedule SE on the IRS website still shows 15.3% and Drake is calculating it at 15.3%.

[BOB W]

I read that but the Schedule SE on the IRS website still shows 15.3% and Drake is calculating it at 15.3%.

While this may be true and they are slow to update, IRS has said that all payrolls have up until March 31 to get the 2% reduction fixed. Meaning first 12 weekly paychecks can be at the higher rate but by the 13th paycheck an adjustment must be made bringing the quarter to show the 2% reduction for the whole quarter.

[BOB W]

I read that but the Schedule SE on the IRS website still shows 15.3% and Drake is calculating it at 15.3%.

Dave> Form SE is for 2010, the new law is for 2011. So no forms for 2011 are even out yet.

[DaveO]

Doh! I stepped in that one didn't I?