With any tax law change, there are caveats and unintended consequences. One of those is that they don't want those in higher earning brackets to save more than 2/12's of their annual FICA savings by taking all their income in the first few months. To resolve that they have also added a recapture tax to the payroll system.
In a compromise that will defer but not solve the problem, Congress has decided that two more months of payroll tax cuts will be given. A little tax savings is better than nothing.
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IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
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