Changes on MCC employee paychecks

On Dec. 17, 2010, President Obama signed the Tax Relief, Unemployment Insurance Authorization, and Job Creation Act of 2010 (H.R. 4853).

Part of the act, which is being referred to as the payroll tax holiday, provides for a two percentage point payroll tax cut for employees, which reduces the employee portion of the Social Security tax withholding rate from 6.2% to 4.2% of paid wages. This went into effect on Jan. 1. (The employer rate of 6.2% remains unchanged).

This holiday is currently approved for one year. The cut in taxes should allow each employee to see an increase in their net pay if they currently pay in to Social Security. The difference will be reflected on your first paycheck of 2011. Additionally, the new benefit rates will be reflected on that check.

New Federal Tax tables should be updated in Peoplesoft within the next few weeks.