Payroll tax holiday begins today. What it means. (credit, tax return, wages)
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The balance is going to be forgiven/written off... no way thousands are going to be able to pay some baloon payment. These folks will start crying to the government, the media will make a big hue and cry about it and the payments will be forgiven.
Again with this....
How much do you think average low income to middle class wage earning is missing from each paycheck out of all this? Then consider it only last four months (1 September - 31 December).
In any event there is a simple answer; don't spend the "savings" but put it aside in bank so can write out a check by April 15, 2021.
Besides what part of employers are liable for unpaid taxes aren't you understanding?
"The guidance from the two agencies confirmed that employers would be on the hook for repaying the government for any payroll taxes that their employees defer. The businesses in turn are supposed to collect the taxes from their employees. That amounts to 6.2 percent of an employee's salary for Social Security and 1.45 percent for Medicare. The tax can be deferred from September 1 through December 31 of this year and recouped from January 1 through April 30, 2021."
Current laws (that neither DT nor any other POTUS can change) specifically mandate employers collect, withhold and forward payroll taxes to IRS. Individual wage earners don't have a GD thing to do with it besides filing out a valid W-2 form. Thus it is the business/employer who is on hook for some "baloon payment", not workers.
Just a magic way for Trump to make people believe they just got a salary bump. Bush did the same when he ran for re-election. This is the kind of shenanigans that a sitting president can do to stay in power by getting the less informed people support.
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My employer has just announced that we will not be participating, for several reasons. I doubt that many, if any would participate anyway since we are not only still working (most from home) but saving the commute costs.
How much do you think average low income to middle class wage earning is missing from each paycheck out of all this? Then consider it only last four months (1 September - 31 December).
In any event there is a simple answer; don't spend the "savings" but put it aside in bank so can write out a check by April 15, 2021.
Besides what part of employers are liable for unpaid taxes aren't you understanding?
"The guidance from the two agencies confirmed that employers would be on the hook for repaying the government for any payroll taxes that their employees defer. The businesses in turn are supposed to collect the taxes from their employees. That amounts to 6.2 percent of an employee's salary for Social Security and 1.45 percent for Medicare. The tax can be deferred from September 1 through December 31 of this year and recouped from January 1 through April 30, 2021."
Current laws (that neither DT nor any other POTUS can change) specifically mandate employers collect, withhold and forward payroll taxes to IRS. Individual wage earners don't have a GD thing to do with it besides filing out a valid W-2 form. Thus it is the business/employer who is on hook for some "baloon payment", not workers.
the employer may have the obligation but the employer also has a right to collect from the employee
"If necessary, the Affected Taxpayer may make arrangements to otherwise collect the total Applicable Taxes from the employee."
I thought Trump didn’t have the power, even with an executive order, to implement this. Did anyone challenge this in court? And what does this mean for the Social Security fund?
If it becomes permanent, the SS trust fund would be exhausted by May, and there would be no more SS.
It's nothing but a tax deferment. It's not worth even doing. If it was tax forgiveness that would be one thing, but it's not so I'm not worrying about and still paying my taxes as usual.
How much do you think average low income to middle class wage earning is missing from each paycheck out of all this? Then consider it only last four months (1 September - 31 December).
In any event there is a simple answer; don't spend the "savings" but put it aside in bank so can write out a check by April 15, 2021.
Besides what part of employers are liable for unpaid taxes aren't you understanding?
"The guidance from the two agencies confirmed that employers would be on the hook for repaying the government for any payroll taxes that their employees defer. The businesses in turn are supposed to collect the taxes from their employees. That amounts to 6.2 percent of an employee's salary for Social Security and 1.45 percent for Medicare. The tax can be deferred from September 1 through December 31 of this year and recouped from January 1 through April 30, 2021."
Current laws (that neither DT nor any other POTUS can change) specifically mandate employers collect, withhold and forward payroll taxes to IRS. Individual wage earners don't have a GD thing to do with it besides filing out a valid W-2 form. Thus it is the business/employer who is on hook for some "baloon payment", not workers.
Easily addressed via a general pardon for anyone who benefited from or engaged in the process. This would cover both employees and employers and is exactly within the power of the president to do so. But I don't think it'll come to that. No, I think Congress will come in with a legislative solution.
I'm DoD, so I'm pretty sure I'll be benefiting from this plan. Now, I have no need for the extra money, so don't see myself spending it even if I think that it ultimately will be forgiven via pardon or legislatively.
First of all neither republicans nor democrats in Congress wanted another payroll tax holiday. Mitch McConnell told DT this and refused to bring it to senate floor and or even include it in any version of second stimulus bill GOP was cooking up.
Two, while POTUS can "pardon" a criminal act there would be potentially thousands of businesses and hundreds of thousands individual employees who would need some sort of action to get around IRS enforcement action for back taxes.
Three, individuals in middle class won't have a "huge" tax bill since this action only covers a few months (1 September to end of December). Smart persons would simply put money aside to pay back these sums because they know it is coming.
Four, Congress likely will be in no freaking mood next year to keep having their authority usurped by the Orange Maniac (assuming DT wins in November). Congress in particular the House controls nation's purse strings by USC. Surely by now the Pelosi woman (or whoever is Speaker after of House in new year) has learned not to trust DT an inch. There are four thousand ways from Sunday House can mess with DT or any POTUS. If they would pull up their big boy/girl pants and do so, that would be that.
Finally there are very good reasons why neither GOP nor democrats wanted another payroll holiday; it does jack sh**t for middle class or below workers, but sends bulk of benefits to those with highest earned income. In otherwise DT did what he has done from get go; given his pals and other wealthy people a nice fat bit of cash at taxpayers expense. These people can more than afford to pay back this no interest loaned money.
I never claimed that Republicans or Democrats in Congress wanted another payroll tax holiday.
Moving on, pardons apply to civil and criminal acts and could be applied to cover both employees and employers. As I have mentioned before, the only way that tax law works is via the threat of criminal or civil action being taken by those who are in violation of the law. With a mass general pardon, that such a threat is nonexistent. The White House has already stated that it will take "any steps possible to forgive this deferral."
As for Congress being in the "mood," the beauty of the situation is that they will get in line regardless I wager as the political optics will be that they had the opportunity to forgive the taxes (assuming President Trump doesn't pardon) but didn't. And no politician wants to be in that situation.
And the payroll holiday is doing keeping hundreds of dollars more in my pocket each month. That's not "jack sh**" for millions of middle class workers. I recall when the Obama administration smartly rolled out TV ads of real middle and working class Americans explaining what even an extra $20 a week (and it'll be a lot more than that for many middle class workers) meant for them in the debate over extending part (but not all) of the Bush tax cuts. The fact that the bulk of the tax holiday funds will go to higher wage earners (as they pay more in taxes) doesn't take away from this point.
Last edited by prospectheightsresident; 09-04-2020 at 01:46 PM..
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