The IRS just announced mileage rates and FICA earnings cutoff and withholding rates for 2011
Business mileage rate will increase from 50 cents/mile in 2010 to 51 cents/mile in 2011.
Final Move Deductible
Final move deductible rate will increase from 16.5 cents/mile in 2010 to 19 cents/mile in 2011.
Employee FICA Contribution Rate Reduced and Earnings Cutoff Announced
The FICA earnings cutoff for 2011 will be $106,800, which is the same earnings cutoff as this year.
President Obama signed into law a reduction of the worker’s contribution FICA rate for 2011. The FICA rate will be reduced from 6.2% to 4.2% for one year. The employer’s contribution rate will not change for 2011.
Other Important News and Notes…..
1. The marginal tax rates will remain the same through 2012
2. Sales tax deduction option will extend through 2011
3. No phase-out of deductions and exemptions for high-income earnings will extend through 2012
Source: Orion Mobility