Posted on 12/19/2011 12:30:21 PM PST by freespirited
Officials from the policy-neutral National Payroll Reporting Consortium, Inc. have expressed concern to members of Congress that the two-month payroll tax holiday passed by the Senate and supported by President Obama cannot be implemented properly.
Pete Isberg, president of the NPRC today wrote to the key leaders of the relevant committees of the House and Senate, telling them that “insufficient lead time” to implement the complicated change mandated by the legislation means the two-month payroll tax holiday “could create substantial problems, confusion and costs affecting a significant percentage of U.S. employers and employees...”
The NPRC ... represents organizations that provide payroll processing and services to more than 1.5 million employers, impacting one third of the private sector....
Isberg wrote that “many payroll systems are not likely to be able to make such a substantial programming change before January or even February. The systems affected tend to be highly complex, normally requiring at least ninety days for a change of this magnitude for software testing alone; not to mention analysis, design, coding and implementation.”
Part of the issue has to deal with Congress’ desire to make sure “that highly compensated employees not enjoy the full benefit of the 2% tax break because of bonuses or other high compensation falling into the first two months of the year,” Isberg wrote, saying “there simply is insufficient time to implement this major change in withholding requirements.”
(Excerpt) Read more at abcnews.go.com ...
If the DIMs are so Hell bent on the “Payroll tax cut” why dont they just pass a simple 2% income tax cut rather than target SS? In the end isn’t about the same thing?
Who understands what the Dems see as an advantage to them with the 2 month extension as opposed to 1 year? Not obvious to me.
However, every payroll pro knows a very simple (and inconvenient) truth: the exceptions can be run manually. Pain in the a**? Hell yeah.
Or, they could rebate the cut in a lump sum in two months. Another payroll and accounting nightmare, but it's not like this law is the first one to create those....
Harry and the WH don’t need no stinking logistics.
They rule, we fix later, if we can - doncha know that?!
people need to pay for their own SS and medicare.....not other people. It’s stupid and not a tax cut but are trying to turn it into more welfare. Democrats are playing games to try to move around the deck chairs on the Titanic. Republicans should emphasis other people will be getting a tax hike, like people who refinance to pay for this.
It isn't the same to the RAT voter base, the majority of which pay no income taxes.
Now, how to give them MORE money? Well, I said Federal INCOME Tax...SS is taxed on EVERYBODY; it's called OASDI and is a straight 6.2% right of the top. They have to pay it and can't get any of it back at the end of the year. So, OBAMA decides we're gonna cut that 2% to 4.2% and it won't hurt his constituents' minimum benefits under SS. Government sponsored theft is all this house of cards is. It will fall, certain.
They want another 2 months to play games and add/subtract things to the bill. Kick the can down the road and figure out a way to get rid of the pipeline mandate.
While it has been involving other taxes, it seems the past several years, there have been these last minute games in DC, with no thought to the real world consequences.
Payroll tax changes are a nightmare for employers. For a large employer these taxes computed in almost real time. The taxes must be deposited within one business day of payment of the wages. The change that was put in place last year was difficult to implement because payroll tax computer programs had to be redone.
Many employers had to do this by excel spreadsheets while waiting on their programmers. Mistakes were made, penalties were assessed and letter had to be written asking for those penalties to be abated.
A two month deal is truly a nightmare because payroll taxes, although paid daily, weekly or monthly are reconciled and reported on a quarterly (3 month period). The IRS would have to revise Form 941 and may not have the form ready for the 1st quarter.
No. 47% of the people that earn a paycheck, do not pay federal taxes and therefore, would receive no benefit. In addition, if there were a 2% income tax cut, it would apply to those filthy rich people on all of their income. It would be a bloody windfall for the rich (in the words of a democrat).
That said, I agree with you.
Who cares about practical reality? We’re trying to establish a post Constitutional utopia here, so get on board or get lost!
“Who understands what the Dems see as an advantage to them with the 2 month extension as opposed to 1 year? Not obvious to me.’
Gives them 2 more months to figure out how to kill Keystone and blame it on the Republicrats.
It is all just smoke and mirrors anyway, so why bother as to the logistics or the implementation.
They can sure implement things to waste trillions but they can’t do this? Obama and Reid probably knew this all along that is why they pushed it to look good politically.
Somebody needs to tell the Senate RINOs about this.
Not ever one pays income tax so it would not be a cut for them, but FICA affects everyone that works whether or not they actually pay any income tax.
No Keystone pipe line.
No Keystone pipe line.
++++++++++
Hmmmm. How will that work?
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