Payroll Tax Cut Extended to the End of 2012
A hot topic at the beginning of this year was social security rates and the new "recapture" provision. The reduced rates were originally set to expire on 2/29/12 and how the recapture was going to be reported was not determined. Last Thursday the IRS published an article stating the tax cut has been extended to the end of 2012 and that the 2% recapture was repealed. So what does this mean for Escape? No changes are needed. The OASDI deduction will remain at 4.2%. If you have any questions please contact your Escape Customer Care payroll representative. Below is a link to the IRS page.