Payroll Tax Cut Extended

Under the Middle Class Tax Relief and Job Creation Act of 2012, enacted February 23, 2012, workers will continue to receive larger paychecks for the rest of this year based on a lower social security tax withholding rate of 4.2 percent, which is two percentage points less than the 6.2 percent rate in effect prior to 2011. This reduced rate, originally in effect for all of 2011, was extended through the end of February by the Temporary Payroll Tax Cut Continuation Act of 2011, enacted Dec. 23.

FAQs on New Payment Card Reporting Requirements

The Internal Revenue Service is providing special transitional relief to banks and other payment settlement entities required to begin reporting payment card and third-party network transactions to the IRS on new Form 1099-K. The IRS gave new guidance on independent contractors. Read more....