Social Security is taken less of a bite out of paychecks this year.

Employee contributions to social security are reduced from 6.2 to 4.2% temporarily for 2011.  Self-employed individuals also enjoy a one year 2 % reduction from 12.4% to 10.4%.   The employer portion remains unchanged for 2011 at 6.2%.   

Although this temporary easing of payroll tax burdens will be well received by the working world it does not indicate a trend.  For 2012 the rate returns to 6.2% and the projected maximum wage base upon which the tax is assessed, currently at $106,800, is scheduled to increase in 2012 to $110,700 and continue to increase yearly thereafter reaching $153,300 for year 2020.