business
Revised payroll tax form reflects cuts
NEWS IN BRIEF — Posted March 12, 2012
The form employers file quarterly with the Internal Revenue Service to pay payroll taxes withheld from staff salaries has been changed to reflect the implications of the Middle Class Tax Relief and Job Creation Act of 2012.
This legislation, which was signed Feb. 22, holds Social Security taxes at 4.2% until the end of 2012 and means about 160 million workers will continue to receive slightly larger paychecks.
This tax was reduced from 6.2% to stimulate the economy. The average family making $50,000 takes home an extra $40 per pay period.
More information about form 941 is available online (link).
Note: This item originally appeared at http://www.ama-assn.org/amednews/2012/03/12/bibf0312.htm.












