Mind Blowing 2011 IRS FICA Change For Micro-enterprises and All Business Ventures
On December 17, 2010, The Tax Relief Act 2010 was signed into law. This was the same piece of legislation that extended the Bush era tax credits. But the unique part is for the first time in my professional career, the Social Security tax was lowered to 4.2% for employees only. The Entrepreneur’s Advisor wants to make sure that you are ready.
What does this mean for Entrepreneurs and Professional Practice Employers
FICA taxes contain 2 parts. The first is a Social Security tax which has been at 6.2% for many years and the second is the Medicare tax which remains at 1.45%. The combination was the 7.65% that employers are required to withhold from all employee wages.
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