2012-capitol-hill-agreement.pngHouse Speaker John Boehner (R-OH) announced Thursday afternoon that a deal had been reached on Capitol Hill to extend the 2% payroll tax holiday for the first two months of 2012. If approved by the House and Senate and signed into law, the employee payroll tax rate for January and February will remain at the 4.2% rate that has been in effect for 2011.

In an apparent reference to a wage cap provision in the Senate-passed bill that the National Payroll Reporting Consortium had said would be difficult to implement with so little lead time, Speaker Boehner said that the agreement ensures that “a complex new reporting burden is not unintentionally imposed on small business job creators.” Read more.

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Capitol Hill Agreement on Payroll Tax Holiday

Fri Dec 23, 2011

2012-capitol-hill-agreement.pngHouse Speaker John Boehner (R-OH) announced Thursday afternoon that a deal had been reached on Capitol Hill to extend the 2% payroll tax holiday for the first two months of 2012. If approved by the House and Senate and signed into law, the employee payroll tax rate for January and February will remain at the 4.2% rate that has been in effect for 2011.

In an apparent reference to a wage cap provision in the Senate-passed bill that the National Payroll Reporting Consortium had said would be difficult to implement with so little lead time, Speaker Boehner said that the agreement ensures that “a complex new reporting burden is not unintentionally imposed on small business job creators.”

The House and Senate could approve the new legislation, which extends the payroll tax holiday as well as unemployment insurance benefits and physician Medicare reimbursements, under unanimous consent on Friday, Dec 23, and send the bill to the President for his signature.

Lawmakers have pledged to negotiate in January an extension of the 2% payroll tax holiday for all of 2012.