Updated 2011 Annual Limits Card
In November 2010, Commonwealth Benefits Group distributed a template for an Annual Limits Card, prepared by Spencer Fane Britt & Browne, LLP, showing various IRS, Social
Security and Medicare limits in effect for both 2010 and 2011. On Dec. 17, President Barack Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Although that Act was better known for extending the "Bush tax cuts" by two additional years, it also included a one-year reduction in the rate of the FICA tax payable by employees.
In particular, the portion of the FICA tax applicable to the Old Age, Survivors, and Disability Insurance Program (OASDI) was reduced from its long-standing 6.2 percent to only 4.2 percent. Although employers have traditionally paid the same OASDI tax rate as their employees, this one-year reduction was not applied to employer OASDI taxes. Accordingly, employers continue to face a 6.2 percent tax rate during 2011.
Commonwealth Benefits Group has revised the 2011 Annul Limits Card to reflect the differing tax rates for employers and employees. You may access the updated 2011 Annual Limits Card by clicking HERE.