Payroll Tax Cut Set to Expire
The Social Security tax reduction that reduced the employee tax rate from 6.2% to 4.2% for the year 2011 is set to expire on Dec. 31, 2011. The Obama administration is increasing pressure on Congress to extend the tax cut before lawmakers recess for the holidays.
If the tax cut is extended, you will not see any change in withholdings from your paychecks issued after Dec. 31.
If the tax cut is not extended, you will see an additional 2% in Social Security tax withheld from all pay checks issued after Dec. 31.
As legislation is currently pending, HR will provide an update if an extension is not agreed upon.
This tax change will not affect any student employees that are exempt from Social Security tax or temporary employees participating in the Temporary Employee Retirement Plan (TERP).
As a reminder, the USF Employee Assistance Program is available for guidance concerning any financial needs or concerns.
For questions, please contact the Payroll Department via email at PayrollHelpDesk@admin.usf.edu or call (813) 974-7955 or visit us at SVC 0077.