Final payroll tax reduction agreement reached; does not include full expensing extension

A House and Senate conference committee today formally approved a final agreement on legislation (H.R. 3630) that will extend a two-percent employee payroll tax reduction through the end of 2012. The legislation would extend the current 4.2-percent employee payroll tax rate for another ten months; Congress late last year extended the reduction from the prior 6.2-percent rate through the end of February. The conference agreement also would extend expanded federal unemployment benefits and Medicare physician pay rates through the end of 2012.