On December 23, 2011, President Obama signed into law H.R. 3765, the Temporary Payroll Cut Continuation Act of 2011, extending the current 4.2% Social Security Old-Age, Survivors, and Disability Insurance (OASDI) tax rate for employees to wages paid after December 31, 2011, and before March 1, 2012. The payroll tax will temporarily remain at the current 4.2% rate instead of reverting to the 6.2% rate it was at before the holiday tax cut enacted last year. Without last minute congressional action, the higher rate would have returned January 1, 2012.

California Payroll is ready with the updated Social Security rates for 2012 payrolls with check dates of January 1, 2012 through February 29, 2012.

California Payroll will continue to closely monitor future regulations passed by Congress affecting Social Security and other payroll taxes, and post updates as necessary.