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The tax is paid by employers based on the total remuneration (salary and benefits) paid to all employees, at a standard rate of 14% (though, under certain circumstances, can be as low as 4.75%). Employers are allowed to deduct a small percentage of an employee's pay (around 4%). Another tax, social insurance, is withheld by the employer.

The two-year-old cut to payroll taxes was not extended. The rate had been reduced from 6.2% to 4.2% for 2011 and 2012. Some tax credits for poorer families were extended for five years, including ones for college tuition and an expansion of the Earned Income Tax Credit.

The Middle Class Tax Relief and Job Creation Act of 2012 ( Pub.L. 112–96 (text) (PDF), H.R. 3630, 126 Stat. 156, enacted February 22, 2012 ), also known as the " payroll tax cut", was an Act of the United States Congress. The bill was passed by the U.S. House of Representatives on February 17, 2012 by a vote of 293‑132, and by the Senate by ...

Based on the summary of federal tax income data in 2009, with a tax rate of 35%, the highest earning 1% of people paid 36.7% of the United States' income tax revenue. In 2012, President Obama announced plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%.