Social Security Disability beneficiaries should not be worried about continued benefits just because of the continued payroll tax cut. Before 2011, employees and employers each paid 6.2% of taxable payroll. However, the payroll tax cut passed in December 2010 provided that the employees would pay only 4.2% in 2011. The employers’ rate remained at 6.2%. The current cut is scheduled to expire on February 29, 2012. This payroll tax cut has put extra dollars into each workers’ paychecks thus enabling them to spend more and, hopefully, stimulate the economy along the way.
Payroll contributions under FICA (the Federal Income Contributions Act) fund the Social Security Trust Fund. Payroll tax cuts will not result in a loss of revenues to the Trust Fund. The current legislation provided that the Trust Fund will receive all revenues it would otherwise receive through a transfer from the federal budget’s General Fund.
If you need more information about a personal injury matter (car wreck, boating accident, slip and fall, etc.), Social Security Disability or SSI matter, EEOICPA claim, or a workers compensation matter, please contact the Law Offices of Tony Farmer and John Dreiser for a free case evaluation. We can be reached at (865) 584-1211 or (800) 806-4611, or through our website. Our office handles claims throughout East Tennessee, including Knoxville, Chattanooga, Kingsport, Bristol, Johnson City, Morristown, Maryville, Rogersville, Dandridge, Tazewell, New Tazewell, Jefferson City, Strawberry Plains, Sevierville, Gatlinburg, Loudon, Kingston, Halls, Maynardville, Crossville, Cookeville, Jamestown, Sweetwater, Lenoir City, Athens, Oak Ridge, Clinton, LaFollette, Lake City, Jacksboro, Bean Station, Cosby, Newport, White Pine, Mosheim, Wartburg, Sunbright, Pigeon Forge, and Deer Lodge.