Corporate Consulting Services, Ltd. (CCS) is a recognized leader in the employee benefits and HR consulting fields. For over 20 years, CCS has been providing its clients with creative solutions in order to balance human and financial needs. Whether we are navigating the complex healthcare landscape or deploying new human resources initiatives, our objective is the same – to facilitate the best and most cost-effective solutions for our clients so they can focus on their business.
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CCS Alert - Obama Signs 4.2 Percent Social Security Tax Rate Extension
December 27, 2011
On December 23rd, President Obama signed modified legislation (H.R. 3765) that will extend the 4.2 percent rate for the employee portion of Social Security tax into the first two months of 2012.
Based on the law as signed, wages earned in the first two months of 2012 are subject to the 4.2 percent rate for those with a wage base of up to $110,100. Employers should implement the new payroll tax rate as soon as possible in 2012 but not later than Jan. 31, 2012.
The law also includes a new “recapture” provision, which applies only to those employees who receive more than $18,350 in wages during the two-month period. Such employees who are earning more than $110,100 annually will pay this recapture tax on their personal tax return.
Corporate Consulting staff took the dread out of the renewal process for us. Whenever your capable staff presented the renewals, we were also presented with comprehensive (but understandable) options. When we asked for enhanced and additional benefit information, you presented equally comprehensible information.
—Gail Carmichael, Human Resources Director, HANAC, Inc.
