I’m confused. Does this just mean the company will stop taking out the federal witholding from the checks? Will a person then have less to apply come April 15 to their tax bill? Or are taxes going down??
You’re catching on... no one is going to know what to do. It’s a freaking clusterfruck.
This only applies to social security tax.
You have FICA taken out of your check each pay period. Your employer matches it and it goes into the social security system. That system is already deeply in trouble because congress has been dipping int it for decades, so the little dab won’t have any effect on social security. In the mean time you get to keep the 6.2% each pay period and your boss keeps the matching amount.
Will it hurt social security? Not really. If you make $50,000 a year and owe a million dollars what difference does an extra $100,000 make?
This is FICA taxes, not income taxes.
Payroll taxes are FICA and Medicare. The employee pays half and the employer pays the other half. The total comes to about 15% of a persons if they are W-2. So if you get a paycheck you will get 7.5% more in your paycheck till the end of the year. What is the matter with that?