countrygirl2
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Post by countrygirl2 on Sept 1, 2020 20:09:21 GMT -5
It will be like the one Reagon did, come tax time people will owe money and not realize why. It's a political gimmick.
Better hope he doesn't make it permanent, people like us will be screwed. We will still have some income, maybe. but many people are totally dependent on SS for their sole income.
The homelessness and starvation will be rampant. He has no idea what he is doing. Or he is just indeed cruel. Also no medicare nor medicaid nor disability.
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billisonboard
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Post by billisonboard on Sept 1, 2020 20:15:18 GMT -5
... Better hope he doesn't make it permanent,... He doesn't have the authority to make it permanent.
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countrygirl2
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Post by countrygirl2 on Sept 1, 2020 20:25:38 GMT -5
Not yet he doesn't. This election is vital to the future of EVERYTHING that makes America, America.
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knot12gossip
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Post by knot12gossip on Sept 1, 2020 20:34:38 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 I disagree. I don't think the plan is to forgive anything. This just creates another mess, that unfortunately lower income earners will have to suffer to make ends meet to pay back the IRS in back taxes with interest. It's just stacking poop on top of poop, burying poop and then throwing more poop on top of that. No real plan to resolve what he created.
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countrygirl2
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Post by countrygirl2 on Sept 1, 2020 20:44:01 GMT -5
He wants to help, rescind the tax break for the ultra rich. They need nothing. Then take Nancy up on the $2 trillion and it will come out to the $1 trillion the republicans want. Dilemma solved.
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Tennesseer
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Post by Tennesseer on Sept 1, 2020 21:09:09 GMT -5
My former employer is not taking out social security taxes from its employees. The reason being if the employee resigns/is terminated before the end of the year, the employer will be responsible for paying back the IRS the taxes the now former employee would have had to pay back after the first of the year.
So, nope.
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nidena
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Post by nidena on Sept 2, 2020 0:09:38 GMT -5
With the information you guys have said, I think any military member who is living off just their retirement--which is paid on the 1st of the month--would, for sure, fall into the applicable wage category. Maybe not officers but definitely enlisted. That's a lot of small increments.
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billisonboard
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Post by billisonboard on Sept 2, 2020 8:00:04 GMT -5
With the information you guys have said, I think any military member who is living off just their retirement--which is paid on the 1st of the month--would, for sure, fall into the applicable wage category. Maybe not officers but definitely enlisted. That's a lot of small increments. For Social Security tax purposes, military retirement pay is not considered earned income and no Social Security is withheld. link If true, then military retirement pay won't be impacted at all.
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teen persuasion
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Post by teen persuasion on Sept 2, 2020 8:09:50 GMT -5
My former employer is not taking out social security taxes from its employees. The reason being if the employee resigns/is terminated before the end of the year, the employer will be responsible for paying back the IRS the taxes the now former employee would have had to pay back after the first of the year. So, nope. I think you are trying to say that they will continue to withhold SS taxes, right? IOW, they are NOT not taking them out, if you KWIM.
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nidena
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Post by nidena on Sept 2, 2020 8:59:06 GMT -5
With the information you guys have said, I think any military member who is living off just their retirement--which is paid on the 1st of the month--would, for sure, fall into the applicable wage category. Maybe not officers but definitely enlisted. That's a lot of small increments. For Social Security tax purposes, military retirement pay is not considered earned income and no Social Security is withheld. link If true, then military retirement pay won't be impacted at all. I never noticed it wasn't taken out. Had to go look. Sure 'nough, it's not.
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Tennesseer
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Post by Tennesseer on Sept 2, 2020 9:18:52 GMT -5
My former employer is not taking out social security taxes from its employees. The reason being if the employee resigns/is terminated before the end of the year, the employer will be responsible for paying back the IRS the taxes the now former employee would have had to pay back after the first of the year. So, nope. I think you are trying to say that they will continue to withhold SS taxes, right? IOW, they are NOT not taking them out, if you KWIM. You are correct and I offered a word salad sans dressing.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Sept 2, 2020 10:42:30 GMT -5
My company isn't doing it either at least not at this time. If they do every single penny is going into savings because from what I have read so far I will be expected to pay all that back. Those of that can are going to hoard it. Those that will spend it are going to end up with massive sticker shock come tax time.
Those that will are going to be stuck with a giant tax bill they can't possibly pay which creates even MORE budgetary problems at the federal level.
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daisylu
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Post by daisylu on Sept 2, 2020 10:59:44 GMT -5
My employer took it out the last cycle, but our cycle runs every 2 weeks so I will have to check back to make sure that they keep taking it out. I will have to get DH to check his. I average $360 withheld, and DH $400 withheld. With our kids aging out tax-wise, that would hurt come tax time.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Sept 2, 2020 11:06:41 GMT -5
My DH hasn't heard anything but I told him to get me a recent pay stub. That way I know how much is being taken out and can pull that into savings when the check hits. I get paid weekly so this is going to be fun. I am going to make sure to set the amount to auto withdraw every week so it doesn't go *poof* by mistake.
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bean29
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Post by bean29 on Sept 2, 2020 13:36:05 GMT -5
This makes no sense to me from an employer standpoint. It is optional and doing it creates extra headaches and risk for us, so why do it?
From an employee standpoint, I still owe the $$, therefore I would prefer to continue paying them.
I read an analysis that said if Trump waives the SS tax (due to pandemic SOE), SS could be broke in less than 2 years.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Sept 2, 2020 13:41:09 GMT -5
This makes no sense to me from an employer standpoint. It is optional and doing it creates extra headaches and risk for us, so why do it?
From an employee standpoint, I still owe the $$, therefore I would prefer to continue paying them. I read an analysis that said if Trump waives the SS tax (due to pandemic SOE), SS could be broke in less than 2 years. Oh good here is hoping neither DH or my employer decide to do it. Would make my life a lot easier.
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bean29
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Post by bean29 on Sept 2, 2020 14:24:31 GMT -5
This makes no sense to me from an employer standpoint. It is optional and doing it creates extra headaches and risk for us, so why do it?
From an employee standpoint, I still owe the $$, therefore I would prefer to continue paying them. I read an analysis that said if Trump waives the SS tax (due to pandemic SOE), SS could be broke in less than 2 years. Oh good here is hoping neither DH or my employer decide to do it. Would make my life a lot easier. The AICPA asked for clarification of a number of issues on August 13 (I don't think they got a response). www.journalofaccountancy.com/news/2020/aug/aicpa-requests-guidance-on-payroll-tax-deferral-coronavirus-relief.htmlThe AICPA asked the Treasury and IRS to clarify the following: •Stating that an eligible employee is responsible for making an affirmative election to defer the payroll taxes; •Stating that an eligible employee can make an affirmative election at any time from Sept. 1, 2020, to Dec. 31, 2020, and if an employee does not elect to defer Social Security taxes, taxes will continue to be withheld, deposited, and paid; •Stating that an “eligible employee” is an employee whose wages are less than $4,000 (or equivalent amount depending on the employer’s pay period) per biweekly period; •Providing a model notice for employers to furnish to eligible employees to inform them that the election to defer Social Security taxes is available for the Sept. 1, 2020, to Dec. 31, 2020, period; •Stating that the payroll amount used to determine eligibility is a cliff; if the wage amount for a specified pay period is above $4,000 or the equivalent amount based on the employer’s regular payroll periods, no deferral is permitted; •Stating that the $4,000 limit should apply separately to each employer of an employee; •Stating that it is the responsibility of the employee and not the employer to pay the deferred payroll taxes; •Stating which penalties are waived as a result of this deferral, including the penalty applicable to responsible parties; •Addressing whether the increase in take-home pay attributable to the deferred taxes can be used to satisfy other employee obligations such as Sec. 401(k) loan repayments, garnishments, and child support payments; and •Stating a payment due date(s) for the deferred taxes and a mechanism for employees to pay the deferred taxes. So, My work Payroll software appears not to be set up to deal with this, the Intuit IOP Payroll Product I use for DH's payroll is not prepared to deal with this, and it appears that our regional CPA firm is telling us to ignore this...so, we are not doing anything to implement this (At least for this week's payroll).
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haapai
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Post by haapai on Sept 2, 2020 14:37:35 GMT -5
It's insane! I've been scratching my head trying to figure out who this could possibly benefit and I'm not finding an answer. Even a small company that employs only family members and had significant debt that they could temporarily extinguish would be playing with fire. I can easily see the very Trumpy mother who did the bookkeeping and prepared Form 941 and made the payments for a very Trumpy child, quitting over this. The danger of not being able to make those 941 deposits is very real. The penalties are quite painful. Interest rates on savings accounts currently stink. It would take nerves of steel to put four months of unpaid employee Social Security payments to productive use.
It's basically a loyalty test -- the kind of loyalty test that a crooked psychic requires of marks precisely to determine how much control they have over them.
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irishpad
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Post by irishpad on Sept 2, 2020 14:50:41 GMT -5
I'm considered self-employed by SS (and crazily, an employee by the IRS) so I pay the full 15% myself. I know this is stupid, but just to show a little spite, I paid my entire SS for this fiscal year already. Fiscally stupid but satisfying.
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haapai
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Post by haapai on Sept 2, 2020 15:01:41 GMT -5
I'm not sure if that was spiteful, Father. Understanding our own vulnerability to temptation and avoiding it is kinda important.
P.S. Am I allowed to call you Father if I am not Catholic? I meant it respectfully but there's definitely a mean and nasty way of using the customary title? Should I have put it in lower-case?
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Post by Deleted on Sept 2, 2020 17:14:12 GMT -5
It's kicking the can down the road for most people. Half must be repaid in 2021- at the same time many will be finding that they owe taxes on the unemployment they got as part of the CARES Act.
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billisonboard
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Post by billisonboard on Sept 2, 2020 18:54:28 GMT -5
It's kicking the can down the road for most people. Half must be repaid in 2021- at the same time many will be finding that they owe taxes on the unemployment they got as part of the CARES Act. This relief for employees is separate from, and in addition to, the deferral of deposits and payments of the employer portion of Social Security tax with respect to the period from March 27 to Dec. 31, 2020, which was authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. ... Although the CARES Act specified that half of the deferred employer portion of Social Security tax would be due Dec. 31, 2021, with the other half due Dec. 31, 2022, the memorandum does not specify when the deferred employee portion of Social Security tax would be due. link
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Post by Deleted on Sept 3, 2020 9:46:44 GMT -5
I fear that so many folks are going to be hit by a double whammy of taxes due on unemployment benefits and payback of deferred SS withholding. It's going to be a nightmare because most folks aren't going to put anything aside for that.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Sept 3, 2020 10:08:54 GMT -5
•Stating that an eligible employee is responsible for making an affirmative election to defer the payroll taxes;
•Stating that an eligible employee can make an affirmative election at any time from Sept. 1, 2020, to Dec. 31, 2020, and if an employee does not elect to defer Social Security taxes, taxes will continue to be withheld, deposited, and paid;
We'll be passing then if that is the case. We are not Phil wealthy. We cannot forgo the taxes, get 11% returns on investments then pay it all back WITH interest in less than a year.
I have a feeling that those that are going to take advantage of it will be those least prepared for the blow back.
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busymom
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Post by busymom on Sept 3, 2020 10:45:25 GMT -5
Well, I just peeked at DS's paystub online, (he gets paid on Thursdays) and his company is still taking out for Social Security & Medicare. So, what if major corporations refuse to play the government's game?
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haapai
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Post by haapai on Sept 3, 2020 11:06:46 GMT -5
Well, I just peeked at DS's paystub online, (he gets paid on Thursdays) and his company is still taking out for Social Security & Medicare. So, what if major corporations refuse to play the government's game? I think that the answer is that the vast majority of us will be better off. Which means that soulless corporations are making better decisions regarding our futures and our finances than our POTUS. That probably says something about his soul.
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wvugurl26
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Post by wvugurl26 on Sept 3, 2020 11:32:57 GMT -5
I would check those September paychecks. While the presidential memo was 8/8, the IRS and Treasury guidance did not come out until 8/28. Those it impacts in my organization will not see it until the 9/18 paycheck.
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nidena
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Post by nidena on Sept 3, 2020 16:18:35 GMT -5
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thyme4change
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Post by thyme4change on Sept 3, 2020 16:31:55 GMT -5
This is going to be a cluster fuck.
My DH is a fed. Their poor HR rep is baffled. The payroll company is scrambling to remove deductions. No one is sure how this will be paid back when it comes time. Like, one big reduction in pay, or an invoice from the IRS?
Clearly Trump just wants everyone's paycheck to go up right before the election. He knows it will be a bump to the economy.. He doesn't care what happens to people. He doesn't care that a lot of people won't be able to pay it back. This will be a huge mess.
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billisonboard
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Post by billisonboard on Sept 3, 2020 16:38:23 GMT -5
Ready. Fire. Aim.
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