Originally Posted by
hook
here's another question....
Say assuming the rate goes back to 6.2% in March thatyou still end up max'ing out Social Security so you paid $6826.2 for the year (I believe they changed the with-holding RATE from 6.2 to 4.2% in Jan-Feb but never altered the maximum with-holding AMOUNT for 2012), do you still have to pay EVEN MORE and give them the 2% you earned in Jan-Feb?
I think there was a cap mentioned in the email. So it looks like if the rate does go back to 6.2%, you won't get double billed. Anyway you slice it, there is no payroll tax cut for the majority of FedEx pilots. You are going to pay either 4.2% or 6.2% beginning in March until you hit the cap ($110,100) for this year and then you will pay a 2% surtax on the money you earned in Jan. and Feb. My bet is that if they extend the tax cut, the surcharge will stay on all money earned up to the cap. You will pay $6826 one way or the other. I guess the silver lining is you get to use their money for a year until they make you pay it back. Looks like lots and lots of trips to Goodwill this year!!