knot12gossip
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Post by knot12gossip on Aug 30, 2020 0:16:54 GMT -5
The IRS clarified on Friday that companies will be obligated not to take Social Security taxes from paychecks starting next week running through the end of the year. Nearly all Americans are taxed 6.2% per check to go toward Social Security. For now, barring any action from Congress, most Americans will see larger paychecks through the end of the year. The guidance is based on an executive order signed earlier this month by President Trump in hopes of stimulating the economy. The Social Security tax deferment is applicable to workers who make up to $4,000 on a bi-weekly basis. Those making more than $4,000 every two weeks will continue to have their Social Security taxes withheld from checks. The deferment is not an actual tax cut, and because the deferment was done via executive order rather than an act of Congress, the taxes will need paid back by April 30, 2021. The White House has said they would like to see the elimination of the Social Security payroll tax be made permanent in an effort to lower the tax burden. Opponents say that eliminating the tax on Americans would make Social Security insolvent. Stephen Goss, the chief actuary for the Social Security Administration, told the US Senate this week that a hypothetical bill that would make the tax deferment permanent would cause Social Security to no longer be able to make payments to beneficiaries by the middle of 2023. For employees making $30,000 a year, the elimination of Social Security taxes would result in an extra $71 per paycheck every two weeks. Assuming the employee has eight paychecks left in 2020, that would result in $572 in taxes deferred in 2020, which would be repaid in 2021. For employees making $60,000 per year, those figures would be doubled. IRS tells companies to not take out Social Security taxes - www.10news.com/news/national/irs-tells-companies-to-not-take-out-social-security-taxes-from-checks-following-presidential-order
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Aug 30, 2020 7:08:05 GMT -5
Please vote against Trump/for Biden in November.
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Deleted
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Post by Deleted on Aug 30, 2020 9:47:11 GMT -5
Trump wants to do away with Social Security and Medicare. This is what happens in fascist countries. You have a consolidation of power and money and a whole lot of struggling poor people.
There's a reason we have received one $1200 stimulus and nothing more. He WANTS people to be forced to work for "his" economy.
He doesn't care if you die. He doesn't care if your children die in school. It actually works for him. He has no use for poor people or anyone not directly serving his needs.
I asked before, how many people have to die for something to change? We are at 180,000+ now. Still, no change. Why is that? Perhaps killing off old people "wasting healthcare dollars" is part of the plan? Of course it is.
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Lizard Queen
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Post by Lizard Queen on Aug 30, 2020 10:22:25 GMT -5
More kicking the can down the road. Americans already have a horrible tendency toward short-term thinking. This solves nothing, and only creates more problems in the long-run. Hopefully this helps the oldsters open their eyes.
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Tennesseer
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Post by Tennesseer on Aug 30, 2020 10:30:31 GMT -5
More kicking the can down the road. Americans already have a horrible tendency toward short-term thinking. This solves nothing, and only creates more problems in the long-run. Hopefully this helps the oldsters open their eyes. Many of us oldsters eyes have been open for quite some time regarding trump long before he was elected the petulent, bully boy-man president.
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Deleted
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Post by Deleted on Aug 30, 2020 10:36:09 GMT -5
There's a reason we have received one $1200 stimulus and nothing more. Yeah, the reason is neither side was willing to give on all the other crap that the other side wanted to tack on the bill. The left is getting just as ridiculous as the right. This country is so ridiculously far in debt, but nobody seems to care. Spend. Spend. Spend. Don't get me wrong, I'd love another $1700 check, or to get a 9K debit card, or some more of that $600/week extra unemployment that brought my take-home to more than I make normally, but I don't think throwing money at the masses whether they need it or not is helpful long-term any more than I think all these huge corporate bail outs are.
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billisonboard
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Post by billisonboard on Aug 30, 2020 10:58:34 GMT -5
There's a reason we have received one $1200 stimulus and nothing more. Yeah, the reason is neither side was willing to give on all the other crap that the other side wanted to tack on the bill. The left is getting just as ridiculous as the right. This country is so ridiculously far in debt, but nobody seems to care. Spend. Spend. Spend. Don't get me wrong, I'd love another $1700 check, or to get a 9K debit card, or some more of that $600/week extra unemployment that brought my take-home to more than I make normally, but I don't think throwing money at the masses whether they need it or not is helpful long-term any more than I think all these huge corporate bail outs are. Reality check: Republicans proposed the Heals Act, a $1 trillion stimulus package, as the next stimulus package. In contrast, Democrats proposed the Heroes Act, a $3 trillion stimulus bill. While Pelosi wants to meet in the middle, Republicans say they’re concerned about total stimulus spending, which has already exceeded several trillion dollars.link It is a legitimate question what should be spent but not that neither side will "give".
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busymom
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Post by busymom on Aug 30, 2020 11:17:20 GMT -5
So, the Republicans are finally "concerned" about stimulus spending? What a joke! Where was that "concern" when they were giving tax reductions to the very wealthy?
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sesfw
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Post by sesfw on Aug 30, 2020 11:24:34 GMT -5
companies will be obligated not to take Social Security taxes from paychecks
Is this a requirement or suggestion?
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Deleted
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Post by Deleted on Aug 30, 2020 11:41:36 GMT -5
companies will be obligated not to take Social Security taxes from paychecks Is this a requirement or suggestion? I hope all the employers refuse. It's so dumb, we don't have SS withheld for 4 months, then come January we have to have double the amount taken out to make up for it, so they can make their amount due in April. I can guarantee you people at lower incomes will barely notice the extra income, but definitely will when double is coming out later! Then what about when if employees quit before year end? The employer is on the hook to cover that amount due.
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billisonboard
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Post by billisonboard on Aug 30, 2020 11:43:09 GMT -5
companies will be obligated not to take Social Security taxes from paychecks Is this a requirement or suggestion? I thought if I went directly to the IRS site I could find the answer. At this location I clicked on the linked guidance and read the actual Notice. I still have no answer to that question.
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haapai
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Post by haapai on Aug 30, 2020 11:50:08 GMT -5
I saw lots of "mays"
Is Channel 10 owned by Sinclair?
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knot12gossip
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Post by knot12gossip on Aug 30, 2020 12:00:10 GMT -5
I saw lots of "mays"
Is Channel 10 owned by Sinclair?
It's owned by E. W. Scripps.
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giramomma
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Post by giramomma on Aug 30, 2020 12:45:53 GMT -5
So, the Republicans are finally "concerned" about stimulus spending? What a joke! Where was that "concern" when they were giving tax reductions to the very wealthy? Or basing the stimulus on how many kids you had? Or making the changes the CTC increase the credit and make more of it refundable. I just figured up how much of our income will go untaxed in our lifetime because of the bush era tax cuts. It's a good chunk. I think we need to be careful about pointing figures. I'm in the middle class. My family is just as much of a problem, in terms of tax reductions/financial gifts from the govt, as much as the very wealthy.
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jeffreymo
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Post by jeffreymo on Aug 31, 2020 8:10:37 GMT -5
Our company is opting out of the employee deferral. Our turnover is too high and we’d end up footing the bill next year. And many employees won’t understand what is occurring. Better to deal with the disappointment now than next year when we would start collecting back taxes from those still around.
If the deferral doesn’t become a tax forgiveness or cancellation it will really hurt low income families.
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bookkeeper
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Post by bookkeeper on Aug 31, 2020 8:40:08 GMT -5
This is a bookkeeper's nightmare. Employees blame the person cutting the paycheck, not the government when goofy stuff like this leaves them in the lurch.
If I were working in small business, I would encourage employees to still deduct that amount into a "savings" vehicle rather than owe the money back the following April.
Are we deferring just social security deductions and not medicare deductions? As pointed out, this helps the employee just a bit giving access to money now rather than later. The elephant in the room is the interest free loan that employers will have by not remitting their share of payroll taxes. How many employers will not be able to catch up come April? When employers don't remit payroll taxes, employees are the ones with no SS earnings for that period.
Free loan for employers = potential chaos for employee.
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Deleted
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Post by Deleted on Aug 31, 2020 8:41:10 GMT -5
How long would it take a company like ADT that does multiple thousands of payrolls for many companies to reprogram their system to defer the payroll taxes but only for a specific group of employees.
Have other payroll programs changed their systems yet?
And do those people who aren't high earners understand that the money that they get now will get paid back April 15 next year by being deducted from their refunds?
Do they understand that if trump is re-elected and make the cut permanent that Social Security will run out of funds in 2023?
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gs11rmb
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Post by gs11rmb on Aug 31, 2020 9:10:43 GMT -5
I just emailed our payroll person and asked if our organization was going to defer collection. My next question was could I opt out! I'd much prefer to continue paying at the regular rate than see extra in my paycheck just to then pay double come January.
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Deleted
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Post by Deleted on Aug 31, 2020 9:19:24 GMT -5
I just emailed our payroll person and asked if our organization was going to defer collection. My next question was could I opt out! I'd much prefer to continue paying at the regular rate than see extra in my paycheck just to then pay double come January. I wouldn't worry about it because it's unlikely that your company or any other can make that kind of change that fast. OTOH, if Operation Warp Speed can discover, manufacture, test, and distribute a Covid vaccine...
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billisonboard
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Post by billisonboard on Aug 31, 2020 9:32:10 GMT -5
I also think that if it were to be made permanent, that anyone who does have it withheld now would be eligible for a refund later.
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gs11rmb
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Post by gs11rmb on Aug 31, 2020 9:37:12 GMT -5
I just emailed our payroll person and asked if our organization was going to defer collection. My next question was could I opt out! I'd much prefer to continue paying at the regular rate than see extra in my paycheck just to then pay double come January. I wouldn't worry about it because it's unlikely that your company or any other can make that kind of change that fast. OTOH, if Operation Warp Speed can discover, manufacture, test, and distribute a Covid vaccine... She responded quickly that they have no plans to do any adjustments "at this time".
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Deleted
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Post by Deleted on Aug 31, 2020 10:34:28 GMT -5
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nidena
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Post by nidena on Sept 1, 2020 18:01:01 GMT -5
So how does that work for those who are paid by the govt? Is that automatically done because it's the govt agency's request?
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wvugurl26
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Post by wvugurl26 on Sept 1, 2020 18:29:31 GMT -5
So how does that work for those who are paid by the govt? Is that automatically done because it's the govt agency's request? I work for a civilian agency but DFAS processes our payroll. I figure they pay at least 50% of the feds. They said they are doing it for the pay period ending 9/12. And they are only doing it if your social security wages are less than $4,000. I feel like most won't realize it's a deferral and they are screwed at tax time.
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jerseygirl
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Post by jerseygirl on Sept 1, 2020 18:35:08 GMT -5
Think the plan is to forgive it next year like the loans from the PPP for small business Unemployed got extra cash , small business got loans so this is aimed at folks who kept working and need some help
But SS and Medicare will be short these funds
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billisonboard
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Post by billisonboard on Sept 1, 2020 18:42:23 GMT -5
So how does that work for those who are paid by the govt? Is that automatically done because it's the govt agency's request? I work for a civilian agency but DFAS processes our payroll. I figure they pay at least 50% of the feds. They said they are doing it for the pay period ending 9/12. And they are only doing it if your social security wages are less than $4,000. I feel like most won't realize it's a deferral and they are screwed at tax time. The $4,000 seemed low so checked: "any employee the amount of whose wages or compensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount concerning other pay periods." link Didn't think about bi-weekly pay.
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billisonboard
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Post by billisonboard on Sept 1, 2020 18:48:58 GMT -5
Think the plan is to forgive it next year like the loans from the PPP for small business Unemployed got extra cash , small business got loans so this is aimed at folks who kept working and need some help But SS and Medicare will be short these funds The "plan" is to request that Congress pass a law to forgive it. President Trump does not have the authority to do it, only to delay the date payments to the government have to be made. It would be good to remember that there was no interest in the House nor Senate to include this type of program in a stimulus bill.
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NastyWoman
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Post by NastyWoman on Sept 1, 2020 18:50:01 GMT -5
companies will be obligated not to take Social Security taxes from paychecks Is this a requirement or suggestion? I hope all the employers refuse. It's so dumb, we don't have SS withheld for 4 months, then come January we have to have double the amount taken out to make up for it, so they can make their amount due in April. I can guarantee you people at lower incomes will barely notice the extra income, but definitely will when double is coming out later! Then what about when if employees quit before year end? The employer is on the hook to cover that amount due. But trump promised to make this permanent when reelected. So it is, I give you money now and, if you don't reelect me, those nasty dems are going to take it all away from you. If that is not an attempt at blatantly buying votes I don't know what this is.
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jerseygirl
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Post by jerseygirl on Sept 1, 2020 19:23:52 GMT -5
I hope all the employers refuse. It's so dumb, we don't have SS withheld for 4 months, then come January we have to have double the amount taken out to make up for it, so they can make their amount due in April. I can guarantee you people at lower incomes will barely notice the extra income, but definitely will when double is coming out later! Then what about when if employees quit before year end? The employer is on the hook to cover that amount due. But trump promised to make this permanent when reelected. So it is, I give you money now and, if you don't reelect me, those nasty dems are going to take it all away from you. If that is not an attempt at blatantly buying votes I don't know what this is. HaHa Both parties are promising ‘free stuff’
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Lizard Queen
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Post by Lizard Queen on Sept 1, 2020 20:00:20 GMT -5
My employer isn't doing it, which is good because it's stupid.
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