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.