The Temporary Payroll Tax Cut Continuation Act of 2011 has been temporarily extended until February 29, 2012. With the Act, the Social Security tax withholding rate was reduced from 6.2 percent to 4.2 percent through February 29. The reduced Social Security withholding will have no effect on employees’ future Social Security benefits.
Employers and payroll companies will handle the withholding changes, so employees do not need to take any action.
However, you may need to take this into consideration when working on your upcoming budgets. If you have become accustomed to having the extra in your checks, it will be ending in March. It may not seem like a lot per paycheck but in this economy for many people every dollar counts.
Here is an article with more information on the Payroll Tax Cut Extension.