New Social Security Contribution Rate for 2011
03. Feb, 2011
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced 2011 Social Security tax rates for employees and self-employed people by two percentage points. The 2011 tax rate is 4.2 percent for employees, 6.2 percent for employers, and 10.4 percent for self-employed people. These rates apply to earnings up to the maximum taxable amount of $106,800 in 2011.
The reduction in 2011 tax revenue due to lower tax rates will be made up by transfers from the general fund of the Treasury to the trust funds. Without further changes in the law, these tax rates will return to 6.2 percent and 12.4 percent, respectively, for employees and self-employed people beginning in 2012.
For more information see: New Social Security Rate Contribution for 2011
