Do you know what OASDI Stands for?

posted on Mar 03 by Katie in the Uncategorized category

Did you know that  OASDI stands for Old age, survivors, and disability insurance? OASDI is what most Americans commonly refer to as Social Security Insurance.

The 2010 Tax Relief Act is in full effect. The relief act reduced the employee -share of OASDI tax from 6.2 percent to 4.2 percent for wages paid in 2011. This one year, temporary, credit replaces the Making Work Pay credit which expired in 2010.

This is great news for your employees and you undoubtedly had a few happy receivers Jan 31^st(the IRS deadline for implementation). Typically workers will see a 2% increase in there take home pay in each check until there year-to-date salary reaches the $106,800 cap.

On the employer side, employer contribution still sits at the 6.2% point and Medicare tax rates remain the same.

2010 saw a slew of tax, benefits, health care and other changes which effect you the employer. It’s is a good idea to have competent professionals working for, or with, you to ensure you stay compliant and current in this fast moving environment. Services such as PEO can help eliminate some liability and save you time and money.

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