What does the president mean by payroll tax cut? Does that mean we pay more on our paychecks??

If Congress had not passed the Payroll Tax Cut extension, the Social Security tax for employees would have increased back to 6.2% starting on January 1, 2012. The tax had been temporarily reduced to 4.2% in 2011 under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. Since Congress passed the extension and the President signed it into law on December 23, 2011, the Social Security tax will remain at 4.2% until February 29, 2012.