Posted on 08/11/2020 5:28:46 AM PDT by John W
The White House has pitched its payroll tax holiday as a boon to American workers that would fatten their paychecks and provide a jolt to the economy. But for companies large and small, the presidential intervention poses difficult legal and logistical questions that only add to the uncertainty that executives and workers are contending with during the pandemic.
Since Mr. Trump, in an order he signed on Saturday, is only suspending the tax, not cutting it, the money that companies would cease to withhold from their employees’ earnings would have to be paid next year, barring legislative action. For companies, this would require some complex accounting maneuvering. For employees, it could mean an unwanted tax bill in 2021, making the break more of a headache.
“This is not a holiday, because there’s a bill at the other end of it,” said Isaac Boltansky, an analyst with the research firm Compass Point.
The Treasury Department is expected to release guidance about how the payroll tax suspension will work. Thus far, businesses have been cool to the idea.
(Excerpt) Read more at nytimes.com ...
The nyt knows how to spin a positive as a negative, and a negative, for bammy, as a positive.
No, it’s not BS as far as I can tell. From what I understand, the EO is suspending the payroll tax retroactive to August 1 through December 31. However, it is possible it could all have to be paid back next year, although Trump did say if he was reelected it wouldn’t have to be repaid.
Sorry, but no way I would suspend my payroll tax and then face a big bill next April 15. Not worth it.
Well for what companies withhold from employees I would hope its worded where they don’t have a choice. What they do about their share is their business. My share as your employee, follow the order.
Ho-hum...
MORE lies from the NYT...
When will the NYT’s “leaders” be required to register as foreign agents?
This one IMO isn’t even really a positive. Putting Working Joes into lump sum indebtedness to the feds while implying it is a gift is a questionable gimmick.
All the coronavirus relief plans have been gimmicks backed by a money printing press.
Anything that causes chaos and bedlam with payroll taxes is fantastic in my book. Adding taxes to employers based on how much they pay their employees has no place in a free, capitalist society.
My understanding is the payroll taxes are suspended until 12/31 of this year after which they resume. If that is not clear enough from a legal point of view it would be easy enough to amend the EO (or issue a new one)to specify the suspended taxes would not have to be repaid.
As for the logistical problems, there are none. Almost all businesses outsource payroll and all that needs to be done is change the % of gross to deduct for SS, Medicare etc to zero until 12/31 and then change it back to where it should be.
The slimes is really getting desperate and is resorting to criticizing minutiae in trying to attack the president.
From the moment I heard of this I suspected this is how it was going to go down. Corporate leadership anymore has spines of jelly. A few tweets from Dem activists and they’ll be ignoring the order.
Great point, one of the biggest BS parts of the story:
The rollout itself may be expensive and time consuming for businesses. The payroll tax rate does not usually change in the middle of the year, Mr. Isberg said, and the shift would require businesses to reprogram computer systems that can be balky.
“Things of this magnitude normally take six months or so for orderly programming,” Mr. Isberg said. “So there will be some employers that just never get this done just from a technical perspective if they have systems that are old or difficult to maintain.”
Was it Rush who said something along the lines....?
If Americans had to write a check at the end of each year for their income taxes they would demand change
Withholding via employers needs to end yesterday. SS, income, ALL taxes. That way, if folks had to write the check themselves, they would know the true cost.
We need to see how irs implements this before it is determined to be a positive or a negative.
I agree with you on what this actually means. Another fun part of this is what about the guy that has two jobs, neither of which, alone, puts him over the threshold, but together they do.
However, I would personally like to see withholding abolished. I think people should simply pay their taxes at the end of the year by writing a check to their rich uncle Sam. This would expose, every year, exactly how much tax you are paying, and ultimately it would reduce our tax because people would not stand for it.
It would also put a LOT of people in trouble with the IRS because most people do not have the discipline to save up all that tax money and actually have it when it’s time to pay it. That also would change the amount of tax we have to pay.
All in all, Trump created a massive problem by signing this thing. He and his advisors cannot be ignorant of all this stuff, so I’m really wondering what they expected to happen. Maybe everything I said above, or maybe something else.
Well for what companies withhold from employees I would hope its worded where they don’t have a choice. What they do about their share is their business. My share as your employee, follow the order.
~~~
If I understand how payroll systems work, they almost have to pay it to you, unless they are going to continue to withhold it. By continuing to withhold it, they are ignoring the executive order. You can theoretically sue your employer.
Agree. A delay is just a delay. I would get a lot more excited about the plan if the Entire Tax Table was revised or abolished. As it is, the liability remains.
“Sorry, but no way I would suspend my payroll tax and then face a big bill next April 15. Not worth it.”
This is a mistake on your part. If you refuse the suspension and the money is NOT required to be repaid you would have lost the 20 weeks of savings which at $100 per week would mean $2000.
However you could allow the suspension and take the amount suspension adds to your check and put it in a separate account and leave it until after 12/31 to see if it has to be repaid. If it does you will have the money set aside, If not you can take the $2000 and spend it as you please.
Never refuse money when it is offered.
By refusing to allow the suspension
I think every “Working Joe” should get a tax bill in January for the full amount of their tax liability for the prior year, instead of relying on his employer to handle his money for him.
No dilemma with our lack of respect for the NYT.
May they suffer, die, be resurrected, and suffer and die, be resurrected, rinse, repeat.
A lower form of life existeth not than a NYT low-IQ low T “journ-0-list”.
Following CW-II, we have very special plans for them.
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