It is being reported in The New York Times today that it is likely that the reduction to the employee portion of Social Security taxes is going to be allowed to expire.  While some economists are recommending a replacement tax cut, many politicians are against continuing this particular tax cut.  Additionally, Treasury Secretary Geithner has told Congress it should end.

This would mean that the Employee portion of Social Security tax withheld from paychecks would revert to 6.2% as it was two years ago.  When this happens, employees will notice a reduction in pay so employers should be knowledgeable about this change and be prepared to discuss it with employees when they ask about pay changes. 

We will continue to watch the issue and will post about it when it becomes official.