What's New in 2011?

ADVANCE PAYMENTS OF EARNED INCOME TAX CREDIT ELIMINATED:
Effective 1-1-11
The Education Jobs Act eliminated advance payments of the EITC in 2011, which means there is no w-5 form to file for advance payments. EITC still exists, however, you must wait to claim this credit until your year end tax filing.


SOCIAL SECURITY TAX LOWERED (EMPLOYEE ONLY)
Effective your first check in January 2011, Social Security taxes will drop to 4.2% from 6.2%. If you have a job--and are paid correctly in regards to your pay being reported to the government,-- this provision will increase your take-home pay by 2% of your gross wages!
This withholding will have no effect on employee's future Social Security Benefits.

Refer to http://www.irs.gov/ for more information on the social security tax changes.