Urgent Payroll Update – FICA SS Withholding for 2012

We have just put out update version 4926 which changes the 2012 federal social security withholding to 4.2% which is the same rate as 2011. We had to wait until the last minute untill congress approved the 4.2% extension into 2012. We had previously changed the program to reverted back to the 6.2% rate until the extension was approved. Unfortunately, the 4.2% is currently only a 2 month extension. If congress does not extend the rate for the rest of the year we will have to make extensive payroll changes to the program to handle two different rates within the same year. We will wait and address this issue in February, 2012.