Payroll tax holiday begins today. What it means. (collection, borrow, wage)

[sedimenjerry]

Originally Posted by marino760

It's my understanding your employer can do this or not do this. It's not obligatory but gives you options to not be taxed now and pay it back later.

We got an email from our upper management (large national company). They said absolutely no way are they partaking. They will be taking out the tax as always because they know it's just gonna have to be paid next year.

[Calico696]

Originally Posted by UntilTheNDofTimE

I agree, but how would this work in this scenario?

Scenario:
The payroll tax holiday becomes permanent for this 3 month period this year only.

How would the employer that opted out repay employees? Seems like a nightmare to look at what each employee had paid into SS through 08/31 and reimburse overages.

This is the question I have. How would thy employees get their "holiday" money if it becomes permanent and their employer collected it from their pay?

[SuiteLiving]

Originally Posted by Calico696

This is the question I have. How would thy employees get their "holiday" money if it becomes permanent and their employer collected it from their pay?

it can be addressed through your 2020 tax return, give you an additional credit for income taxes withheld equal to the amount of FICA tax that didn't need to be withheld.

[Larry Caldwell]

Originally Posted by prospectheightsresident

Moving on, pardons apply to civil and criminal acts and could be applied to cover both employees and employers.

There is no such thing as a civil pardon.

[TexasLawyer2000]

Originally Posted by prospectheightsresident

Moving on, pardons apply to civil and criminal acts and could be applied to cover both employees and employers.

What's a civil pardon?

[lieqiang]

Originally Posted by TexasLawyer2000

What's a civil pardon?

When you say it nicely?

[TexasLawyer2000]

Originally Posted by lieqiang

When you say it nicely?

[UntilTheNDofTimE]

Originally Posted by SuiteLiving

it can be addressed through your 2020 tax return, give you an additional credit for income taxes withheld equal to the amount of FICA tax that didn't need to be withheld.

How can this possibly be done on your tax return? I'm generally curious.

Let's say someone paid 6,000 in FICA for the year as noted on your W2. However there's no way for the tax software to know how much of that 6,000 was paid through 08/31. You cant simply credit 25% for 3 months since wages earned during the year arent consistent for most.

[SuiteLiving]

Originally Posted by UntilTheNDofTimE

How can this possibly be done on your tax return? I'm generally curious.

Let's say someone paid 6,000 in FICA for the year as noted on your W2. However there's no way for the tax software to know how much of that 6,000 was paid through 08/31. You cant simply credit 25% for 3 months since wages earned during the year arent consistent for most.

either add a reporting requirement on the W-2 for qualifying wages or take a shortcut for those with total wages below $X that 1/3rd are deemed exempt.

Wouldn't be perfect but nothing ever is.

[LordSquidworth]

Originally Posted by Hemlock140

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.

Employers shouldn’t participate solely on the basis they could be liable if the money isnt eventually paid by you.

Boneheaded EO to score some cheap political points, overall meaningless like most them.