Federal & Social Security Tax

[My2BabiesLexis&Dill]

I know that the social security tax was lowered for this year in our paychecks but what changed for the federal tax? My check is ok but I looked at my husbands and they did deduct less for SS but Federal went up 20.00 per pay check??

The company my DH works for has a not so bright person doing payroll so I just want to make sure he's doing it right. I called the payroll person like a day or two before checks were being cut to see if it was going to go in effect starting this pay period (they are a week behind on pay) and he didn't hear anything about the new change!

What has your experience been since the change? TIA

 

[allyphoe]

Making Work Pay Credit expired.

 

[brandydandy]

The federal tax went up at our school too. It would have been great to see a notice or something. We thought that our payroll person made a mistake.

 

[My2BabiesLexis&Dill]

My federal didn't go up, so should I change my with holdings so I don't have to pay in at the end of the year?

 

[Marionnette]

My federal didn't go up, so should I change my with holdings so I don't have to pay in at the end of the year?

The federal may not have gone up yet because the money earned on your last paycheck may have been earned in 2010. You might want to wait until the first paycheck that is entirely from 2011 to see if the correct amount is being withheld.

 

[disneychrista]

The federal may not have gone up yet because the money earned on your last paycheck may have been earned in 2010..

It doesn't matter when the money is earned for Taxes it only matters when it is paid.

The Social Security Rate went form 6.2% to 4.2% for EMPLOYEES only. The employeer rate is still 6.2%. So if you are self employeed you would pay 10.4%.

 

[CajunDixie]

I know that the social security tax was lowered for this year in our paychecks but what changed for the federal tax? My check is ok but I looked at my husbands and they did deduct less for SS but Federal went up 20.00 per pay check??

The company my DH works for has a not so bright person doing payroll so I just want to make sure he's doing it right. I called the payroll person like a day or two before checks were being cut to see if it was going to go in effect starting this pay period (they are a week behind on pay) and he didn't hear anything about the new change!

What has your experience been since the change? TIA

Don't get in a hurry to blame the payroll person. I know for a fact we did not receive any sort of notice from the IRS concerning the changes. The IRS shouldn't rely on people magically knowing when they make changes.

 

[2004champs]

The IRS has given companies until the end of January to reflect the new lower rates

 

[Elfstar]

Oops, unfinished thought posted in by accident...

 

[Elfstar]

The Federal Tax Tables for 2011 which were finally put out there for us to use have also contributed to the difference in peoples' federal tax withholdings.

Anyone doing payroll needs to make it their business to know about current payroll laws, upcoming changes and pending legislation that affects payroll. If they join the American Payroll Association, they'll receive frequent communications about these subjects and more. The best thing I ever did was join the APA and earn my Certified Payroll Professional (CPP) designation. Many employers will cover the membership cost (as well as the cost of classes for the continuing education requirements) for their payroll person as it saves them money in the long run.

 

[Elfstar]

Sorry you felt offended.....I'm out to do the best job I can, to protect my employer by making sure they're in compliance with the laws, and, most importantly, to do the best "customer service" job I can for all the company's employees by making sure they're paid correctly and that I can answer most all questions they have regarding their payroll. It's not a matter of being perfect, it's a matter of taking pride in doing a good job.

If someone in payroll didn't know there was a Social Security tax cut for employees (see an earlier post), then they evidently don't even watch the news or read a paper! There've been years when I've had to pay for my classes myself, other years when I couldn't afford classes, either - but I made it my business to keep informed as best I could. The IRS and many states have e-mail newsletters that send out payroll tax information on a timely basis.

And if you work for the government where it's well known funds for employee education are tight, check out your states' websites. Many states have funding for continuing education grants for all kinds of things, not just for payroll. They're not always easy to find but they are out there, and they'll tell you when applications will be accepted for the next time funding is available.

 

[MeekoB]

I was told that because of the changes it could take until the third! paycheck for all the changes to be reflected correctly.