Social Security tax cut applied at UM system

Posted to City, State and Nation by Steven Dickherber at 9:52 a.m., Jan. 13, 2011

The UM system will execute the Social Security tax cut authorized by President Obama beginning on Jan. 20. The new legislation reduces employee Social Security tax rates from 6.2 percent to 4.2 percent for one year.

"It's a temporary type of thing, but in today's economic times, every little bit of take home pay that our employees get is a benefit," MU Staff Advisory Council Chair Diane Bartley said.

Although employees face lower rates, UM system employers will still match Social Security taxes at a rate of 6.2 percent. Refunds will be issued for checks issued between Jan. 1 and Jan. 19.