Dear Colleague,
On December 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The new law reduces the social security withholding tax rate paid by employees from 6.2% to 4.2% for wages paid in 2011, resulting in an increase in take-home pay for most workers. The Social Security wage base limit of $106,800 remains the same for 2011.
Employees do not need to do anything regarding this tax change. It will become effective with the paycheck dated January 14, 2011. Please see the following link for more information regarding this new law: http://www.irs.gov/newsroom/article/0,,id=232590,00.html, or contact the Payroll Office at 802-443-2008 or payroll@middlebury.edu if you have additional questions.
Thank you.
Payroll Office
Middlebury