Here’s a quick and easy way you can save a little more money than last year without having to change a single thing.
The IRS lowered the Social Security contribution rate for 2011 only:
- Self-Employed: Down from 12.4% to 10.4%
- Employees: Down from 6.2% to 4.2%
Use this calculator to calculate your savings between 2010 and 2011 Social Security taxes.
The difference should be saved – all you have to do is automate it.
$100,000 Employee Example
An employee making $100K this year will have to pay $10,400 into Social Security. If you had to pay 2010’s rates, it would be $12,400 this year.
$2,000 savings divided by 9 months left in the year = $222 more to save each month.
BOOM! Just like that, you saved money.