2012 Social Security Tax Update

2012 Social Security Tax Update

The 2011 Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provided a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduction was set to expire on December 31, 2011 however, on December 23rd, President Obama signed legislation that extends the 4.2 percent rate for the employee portion of Social Security tax into the first two months of 2012 (H.R. 3765).

• This legislation temporarily extends the Employee Social Security withholding rate of 4.2% through February 29, 2012.
• The bill also includes a measure requiring that those who are paid more than the pro-rata wage base of $18,350 (2/12s of the 2012 Wage Base of $110,100) recapture any tax relief amounts in excesses of the wage base on their 2012 personal income tax returns. This recapture is only in effect if Congress does not extend the reduced 4.2% rate for the full year.

Additional information can be found on IRS.gov website under the following link: IRS Newsroom Article.

Please call Outstaffing if you have any questions.

Take care of yourself.

100% Covered!

Use your preventive care benefits.

Great news for Outstaffing employees… Due to changes in health care reform law and state regulations, all Outstaffing medical plans now include preventive care benefits! When you get these services from providers in the network, you don’t have to worry about paying anything out of your own pocket for covered preventive care such as screenings, immunizations and exams. You may have to pay part of the costs if you use a provider outside the network. 

Getting regular checkups and exams can help you stay well, catch problems early, and may be lifesaving.

 

The Outstaffing health plans cover 100% of the services listed in this flyer as preventive care.

 

Preventive Care versus  Diagnostic Care 

What’s the difference?

Preventive care is precautionary. Diagnostic care is used to find the cause of existing symptoms.

 For example, if your doctor suggests you have a colonoscopy because of your age, that’s preventive care. But, if your doctor suggests a colonoscopy to see what’s causing your symptoms, that’s diagnostic care and you may need to pay part of the cost (this is your “cost share”).

Employees can learn moreby reading out Preventive Care Flyer 

New Website – Soon!

Outstaffing would like to thank everybody who has helped us with the design and implementation of our new website. We are very excited about the increased communication it will provide our clients, employees and prospects. We feel it is very important to embrace social networking. So, let us know what you think. Give us some feedback. Thanks!

Phil Mauger (Cell WP)