Based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax will increase from $80,400 to $84,900 in 2002.
U.S. Sen. Pete Domenici's plan for a month-long holiday on payroll taxes may be enjoying some interest among lawmakers as one way to stimulate the economy, but some groups are critical, including the American Payroll Association.
U.S. Senator Pete Domenici, R-N.M., has introduced legislation that would exempt employees and employers from the federal payroll tax for one month, calling it a way to jumpstart the economy by getting more spending money into the hands of low- and middle-income Americans.
The Treasury Department and the Internal Revenue Service have announced procedures that business taxpayers may use to redesignate their estimated income tax overpayments as employment tax deposits, so that their overpayments can be used to pay their current employment tax obligations.
Employees can figure out how much income tax should be withheld from their paychecks with the help of an online withholding calculator set up by the Internal Revenue Service.
