Tax News

Payroll Tax Cut Bill Extension is Now Approved!

Written by TurboTaxLisa
Published Dec 23, 2011 - [Updated Mar 7, 2025]
1 min read

After a week of uncertainty in Washington, Congress approved the extension of the payroll tax cut bill this morning, which if not passed, would impact 160 million taxpayers beginning January 1.

The payroll tax cut bill extension keeps taxpayers’ portion of social security tax at 4.2%, renews unemployment benefits, and the medicare reimbursement rate for an additional two months. When Senate leaders return from vacation, a joint House Senate panel is set to negotiate how to continue the tax break through the end of 2012.

Now Congress has gone on vacation and we can start to enjoy our holiday without worrying about a loss of income for the first two months of the year. The extension of the payroll tax bill will continue to help a typical family making $50,000 per year keep $40 additional per paycheck.

Now, how will the $40 per paycheck savings help you as you start the new year?

Lisa has over 20 years of experience in tax preparation. Her success is attributed to being able to interpret tax laws and help clients better understand them. She has held positions as a public auditor, controller, and operations manager. Lisa has appeared on the Steve Harvey Show, the Ellen Show, and major news broadcast to break down tax laws and help taxpayers understand what tax laws mean to them. For Lisa, getting timely and accurate information out to taxpayers to help them keep more of their money is paramount. More from Lisa Greene-Lewis