Tax News Payroll Tax Cut Bill Extension is Now Approved! Read the Article Open Share Drawer Share this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Pinterest (Opens in new window)Click to print (Opens in new window) Written by TurboTaxLisa Published Dec 23, 2011 - [Updated Jul 24, 2019] 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. Payroll Tax 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? Previous Post Payroll Tax Cut Bill Rejected by the House Next Post IRS Updates “Where’s My Refund?” Written by Lisa Greene-Lewis 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 Follow Lisa Greene-Lewis on Twitter. Leave a ReplyCancel reply Browse Related Articles Life Meet Drew Business Taxes Meet Robin Self-Employed Meet Moira Tax Planning TurboTax Enables Refund Advance to Taxpayers Investments Tax Benefits of Real Estate Investing Self-Employed Business Tax Checklist: What You’ll Need When Filing Uncategorized What Is Deferred Compensation & How Is It Taxed? Investments How Does an Inherited IRA Work? Work Choosing Your Business Structure: 5 Types of Businesses… Tax Deductions and Credits Are HOA Fees Tax Deductible? What You Need to Know