Thousands Of Postal Employees To See Social Security Tax Decrease Starting January 7

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NEW TAX LAW
SOCIAL SECURITY EMPLOYEE TAX RATE DECREASES FOR 2011

Thousands of postal employees will have their Social Security employee tax rate decrease 2 percent in 2011.

The tax reduction is a result of the “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” signed into law Dec. 17, 2010.

The Act temporarily decreases the Social Security employee tax rate from 6.2 percent (of the first $106,800 in earned income) to 4.2 percent for 1 year — but some employees will not see any changes in their tax rate.

Here are the new law’s effects:

■ Civil Service Retirement System (CSRS) employees — Since they do not pay Social Security, the new law does not change their tax rate and there will be no change in their retirement deductions.
■ CSRS-offset and Federal Employees’ Retirement System (FERS) employees — Social Security tax will be reduced by 2 percent and there will be no change in their retirement deductions.

The Social Security tax rate change will be reflected in Jan. 7, 2011 paychecks. The reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.

Click here for more information, or contact the Accounting Help Desk at 866-974-2733

6 thoughts on “Thousands Of Postal Employees To See Social Security Tax Decrease Starting January 7”

  1. I am a member of the NALC and Steward. Donate to COLCPE…High Five…LOL…BS, no way. The NALC does not want to recognize any other members unless they are Dems. The NALC still will NOT recognize that 90% of the members are not donating to COLCPE. Duh…idiots. WAKE THE F up! We members know when the NALC is full of Sh.

  2. Ken,
    What are you smoking? It is the Republicans that strapped the PS with this bullshit pre-funded health care so we would flounder. It is the Republican led Congress that brought us 2/3 of the current debt. Obama is no friend on mine, but it is the Republicans and their friends on Wall Street that has brought this country to its knees.

  3. This is unbelievable!! I strongly believe that Obama is putting America to bankruptcy and I think the Republicans better fight him back, otherwise, we’ll go under the red!!!

  6. What a great idea to help put a stake in the heart of Social Security. Wonder who thought of this idea? The Social Security fund is a target of the Republicans. This just helps put the fund in trouble faster.

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