You're Getting a 2% Pay Raise in 2011

Normally, employees pay 6.2% of their salary in Social Security taxes (up to $106,800 of income), but the new tax law that President Obama signed last week temporarily lowers this rate to 4.2% in 2011.  That's the equivalent of a 2% raise in pay next year if you earn $106,800 or less!  If your employer has updated their payroll software with the change, you should see the money in your first 2011 pay.

Of course, the government's goal is to get you to spend that extra money to help spur the economy, but it's a good idea to have a plan for what you'll do with it.

Handy calculator from Kiplinger to help you figure out exactly how much more you'll get: link