The Ohio Republican said in a statement Thursday that he expects to pass a new bill by Christmas that would renew the tax break for two months while congressional negotiators work out a longer-term measure.
That measure would also extend jobless benefits for millions of Americans and prevent doctors from absorbing a big cut in Medicare payments.
The GOP retreat ends a tense standoff in which Boehner's House Republicans came under intense pressure to agree to the short-term extension.
After Boehner's statement, President Obama congratulated GOP lawmakers for ending the 'partisan stalemate,' and extending payroll tax cuts.
