Payroll Tax Cut Extension
On December 23, 2011, Congress approved and President Obama signed a two-month extension of the employee payroll tax cut. The Temporary Payroll Tax Cut Continuation Act of 2011 extends the two percentage point employee payroll tax cut through the end of February 2012.
Unless Congress extends the tax cut, all payroll paid after February 29th will revert back to the full 6.2%. This means that the FICA withholding on the first payroll in March,