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Make The Payroll Tax Extension Fair For American Small Businesses

Thursday, July 07, 2011

For Immediate Release: Contact:  Kristin Oberlander
(202) 466-2100
koberlander@NASEadmin.org
Twitter: NASEtweets

For Individuals Who Are Both Employee And Employer, Uncertain News Lingers About Economic Future

Washington, D.C. – With debt-ceiling talks thrown into limbo, Kristie Arslan, Executive Director of the National Association for the Self-Employed (NASE), released the following statement as Congress considers measures to give employers a break under the Federal Insurance Contributions Act (FICA).
“Every employee working for wages or a salary in the U.S. is currently enjoying a one-year break on the amount they pay in payroll taxes in 2011, thanks to last year’s Obama tax cuts,” said Arslan. “Currently, lawmakers are working on a debt-ceiling deal that will include extending that tax break for employees and reduce the employers’ portion of the payroll tax by the same amount.  This is great news for the small business community as long as individuals who are both employee and employer -- the nation’s 22 million self-employed – are not forgotten and will qualify for this tax relief." 
“Self-employed businesses are doing their part to restore confidence in the struggling economy – they contribute nearly a trillion dollars each year to the economy and provide jobs for millions of workers. They are a key to our economic recovery. Congress needs to ensure that any new tax relief does not exclude the self-employed.”
The self-employed contribute to their payroll taxes through the self-employment tax, paying the same amount as the combined employee/employer FICA contribution. The 2011 Obama tax cuts gave the self-employed a break on the employee half of their self-employment tax liability, but Congress will need to specifically include them in the current deal to ensure they get a break on their employer half, too.



About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's website at NASE.org.


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