2011 Tax Update
There have been some notable changes regarding taxes for 2011. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on December 17, 2010 enacted a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2% to 4.2% of wages paid.
There has been a change to the Federal Tax Withholding Tables for 2011. IRS Notice 1036 provides a summary of the recent tax law changes and includes the 2011 percentage method income tax withholding tables. State of Wisconsin income tax rates will remain the same for 2011. Employees are encouraged to review their federal income tax withholding every year; any major life changes may prompt you to submit a new W-4 Form to change your tax withholding.