Changes in the Social Security tax rate

[Louisville Slugger]

The Federal Government has approved changes in the Social Security tax rate effective 2011. The
employee’s portion of the Social Security tax withheld from 2011 salary and wages will be reduced from
6.2% to 4.2% and is required to be in place by January 31st.

The tax adjustment will be captured for pay week end January 22nd and will impact your check dated
Friday, January 28th.

So that means if I work the exact same hours as I did in 2010 for 2011 I'll receive $867.45 more annually due to the 2% decrease in Social Security. $867.45 more I can contribute to my 401(k) or maybe to some upgrades !

Depending on how much you make this could mean an extra $66.67 to $166.67 in your pocket per month.

What will you spend the extra money on?

2011 seems like a good year to upgrade some equipment. I am going to save $472 in 2011 because I switched car insurance providers, ~ $867 because Social Security decreased, and who knows how big my tax refund will be this year,