OASDI-FICA Tax Rate Reduced         Due to the new tax law passed in December 2010, there are some changes to your payroll that you need to know for 2011. Effective January 1, 2011, the Social Security deduction for your employees will be at a different percentage. That percentage for the employees will be 4.2%. However, you, as the employer will still pay the 6.2% amount.   The following is an example of this change:   EXAMPLE Under Old Under New   Law Law Gross Amount $ 200.00 $ 200.00 Social Security 12.40 8.40 Medicare 2.90 2.90 Net Check with out regard to FWT $ 184.70 $ 188.70   Under the old law, your payroll tax deposit would have been $30.60 ($200 times .0124 plus $200 times .029) Under the new tax law, your payroll tax deposit will be $26.60. ($200 times .104 plus $200 times .029). Therefore, you will no longer be able to calculate your deposit by doubling the social security and the medicare amount. You must do the multiplication.   Example: $200 (Gross Pay) X .104 = 20.80 $200 (Gross Pay) X .029 = 5.80 Payroll tax deposit 26.60   Again this is effective January 1, 2011, thereby the calculations for the first payroll of 2011. Please do not hesitate to contact us should you have any questions about tax changes for 2011 or any other services that we provide (302) 734-5826 or (302) 644-6850.