Frequently Asked Questions
Guidelines for Citing BEA Information | ID: 1020 | Created: Mar-01-2013
The “payroll tax holiday” expired in January 2013.1 As a result, the social security contribution rate for employees increased from 4.2 percent to 6.2 percent, and the contribution rate for self-employed workers increased from 10.4 percent to 12.4 percent. These increases effectively set contribution rates back to the levels that had been in effect prior to 2011.
Employee and self-employed social security contributions are recorded in BEA’s “contributions for government social insurance” series. In the derivation of personal income, contributions for government social insurance are a subtraction. As a result of the increase in the contribution rates, both personal income and disposable personal income for January 2013 were reduced by about $114.1 billion at an annual rate.
Further details about the payroll tax holiday and its impact on quarterly estimates of personal income and federal government receipts and expenditures can be found in the “Tax Provisions” section of the Federal Recovery Programs and BEA Statistics page of the BEA Web site.
1 The “payroll tax holiday,” which was originally enacted by provisions in the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, temporarily reduced the social security contribution rate for employees and the self-employed by 2.0 percentage points for January 2011 through December 2012. See the FAQ "How did the payroll tax holiday and the expiration of the Making Work Pay Credit affect disposable personal income for January 2011?" for more information.
Ask us a question...
Using the FAQ database | All FAQs are displayed when first visiting the page. They are ordered by most recent or recently updated and can be filtered by keyword search term, by category, and by manually selecting the page number buttons. To view any FAQ, click on the title to open the answer. Submitting a question is done by selecting the “Ask a question” tab along the top of the FAQ.
Selecting an FAQ | Clicking on the title of the FAQ will bring up the answer to the FAQ. Navigating back to the list of FAQs is done by selecting the tab “Latest FAQs”. A tab to ask a question specifically about this FAQ can be found at the top of the answer. Also, the FAQ id and date this FAQ was created or last modified is shown in the upper right hand corner.
Searching the FAQs | Enter a keyword search term and click the Search button to narrow FAQ selections. To return to all FAQs, click the Clear button or clear the keyword search field and click the Search button.
Filtering FAQs by category | Chose the category to filter by and click Apply button. This will display only the FAQs related to an assigned category. To return to all FAQs click the Clear button next to the search by keyword field or select ALL from the drop down menu and click Apply button.