About 6:59 PM eastern time yesterday evening (February 22), President Obama signed the Middle Class Tax Relief and Job Creation Act (H.R. 3630) into law. The bill extends the payroll tax cut and jobless benefits through the end of the year.
The bill will continue the 2% reduction in the social security tax paid by employees in their paychecks. The rate, currently at 4.2% will remain until the end of the year. Good news for the employees.
Included in the bill is a repeal of the recapture provision that existed in the temporary cut done in December. For those that had large income in January & February, you will not need to repay any of your savings under the new bill.
