Tax and Money Tip of the Week
President Signs Payroll Tax Cut Extension Bill; New Form 941 Released
February 29, 2012 | No. 83
On Wednesday evening at the White House, President Barack Obama signed into law the Middle Class Tax Relief and Job Creation Act of 2012, H.R. 3630. On Thursday, the IRS released a revised Form 941, Employer’s Quarterly Federal Tax Return, to reflect the extended payroll tax cut.
The act extends the 4.2% rate for the employee portion of Social Security tax through the end of 2012. It also extends certain unemployment benefits and blocks a cut in Medicare payments to doctors. The act also repeals earlier-enacted shifts in the timing of corporate estimated tax payments.
A 2% recapture tax enacted in the December legislation that extended the payroll tax cut through Feb. 29th, which effectively capped the amount of wages eligible for the payroll tax cut at $18,350, was also repealed by the act.
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Mark Vitek, CPA/PFS, CFP®
…until next week.