Following much-heated debate, Congress approved a two-year extension of the 2001 and 2003 tax cuts for all income levels. The SEMA-supported compromise agreement reached by President Obama and Congressional Republicans includes a retroactive extension of the research and development tax credit through 2011, a two-year reinstatement of the estate tax at 35% after the first $5 million, a 100% write-off on capital expenses for businesses during 2011 (up from 50%) and a one-year reduction in the worker’s Social Security payroll tax from 6.2% to 4.2%.
The Internal Revenue Service has released the 2011 percentage method tables for tax withholding and instructions for employers on implementing the 2011 payroll tax cuts. Click here for the IRS notice.
Click here for the law’s major tax provisions, which are important to SEMA-member companies.
For more information, contact Dan Sadowski, congressional affairs manager, at email@example.com.