Trump's payroll tax deferral nixed for House employees
It wasn't immediately known what the Republican-controlled Senate will do.
www.politico.com
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Trump's payroll tax deferral nixed for House employees
- Thread starter SilentPanda
- Start date
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www.politico.com
Fucking useless policy. My wife works in Payroll and literally everyone is saying no to this.
- You have to pay it back
- If you quit/get fired, the company has to pay it back
It's an utterly useless bit of policy.
- You have to pay it back
- If you quit/get fired, the company has to pay it back
It's an utterly useless bit of policy.
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oh wow, never knew about the company paying it back if you quit or get fired
I'm currently being forced to take it. My question is do I end up paying it with my regular taxes, or will my employer just essentially double my payroll taxes once the deferral ends to pay it back.
Almost certainly the latter, because they're the ones on the hook for ultimately remitting the correct amount of payroll tax.
Federal employees are not being allowed to opt out of the payroll taxes not being withheld in our paychecks, at least in my agency we're not.
You will have to pay it back and your employer will double your payroll taxes essentially. If you somehow leave your job before the end of 2020, your employer will be stuck with the bill.
Talk to your payroll clerk or HR to see if you can opt out. But that's if your company didn't already decline to do it.
Can't you change your withholding and pay more upfront per paycheck? I'm not an accountant fwiw.
This is nothing more than a political con.
He's trying to defer the payroll tax until after the election payroll tax and then use that as leverage in the election -- "If Joe Biden is eliminated he will INCREASE TAXES on all working Americans!" The payroll tax deferral would automatically expire in 2021 and have to be paid back, reducing the size of your take-home pay for 2021.
I believe the way it'll work is that for the months that this program is active, Sept 2020 to January 2021, you'd then have to pay that back spread over 12 months for the 2021 tax year. So, let's say you "save" $1000 between now and the end of the year, the payroll tax deferral expires in january, that means you go back to paying the payroll tax AND you pay $83/mo for 2021. It's a scam.
He's trying to defer the payroll tax until after the election payroll tax and then use that as leverage in the election -- "If Joe Biden is eliminated he will INCREASE TAXES on all working Americans!" The payroll tax deferral would automatically expire in 2021 and have to be paid back, reducing the size of your take-home pay for 2021.
I believe the way it'll work is that for the months that this program is active, Sept 2020 to January 2021, you'd then have to pay that back spread over 12 months for the 2021 tax year. So, let's say you "save" $1000 between now and the end of the year, the payroll tax deferral expires in january, that means you go back to paying the payroll tax AND you pay $83/mo for 2021. It's a scam.
My employer is not doing it. The deferral is a disaster for everyone involved, just a political con from, well, the Great Con Man.
Keep in mind, a lot of companies aren't actually going to implement this.
Let's say you got a new job and left this company in late December to start at your new company on January 1. Your old company still owes the federal government your payroll taxes for the last quarter of 2020, and now they have no method to collect that money from you. Anyone who changes jobs or leaves a company for any reason in the last quarter will create an obligation on the company's part should the company opt into this.
As a result, most companies aren't going to do this at all. Not because it's a stupid idea (which it is), but because it could cost them money.
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OK, I just wasn't sure if I was going to have to pay it one lump sum when I paid income tax or something.
Jesus, I was wrong, you have to have it paid back by April. So basically... any savings you make between now and the end of the year will be paid back between January and April. If it's automatically deferred for you it'll be automatically withdrawn. It's a fucking con.
Consider taking that $80/mo or whatever and putting it into some savings account. Who knows maybe you can make $1.75 in interest.
No, because it wouldn't be going into the right "pot" by just increasing withholding.
thank you both. I'll confirm with my company.
Payroll taxes are collected and paid be the employeer so they'll be on the hook for it once it comes due. Companies would probably try to collect the money from their former employees, but that wouldn't be easy for most of them.
If an employer does pay it though it counts as additional income to their former employees which they would need to pay taxes on.
payroll tax deferral is destructive bullshit. literally anybody with any economic, tax, or savings background will tell you as much
Yep, shit sucks. The email I got said it starts my next paycheck and goes til the end of the year and I will be forced to pay it back between January and April of next year. Make it sound like they will just take out double during that period to pay it back. Shit is so fucking stupid and I am very annoyed I can't opt out of this idiocy.
I know the higher ups in military are pissed about it. They are pushing for congress to waive/forgive the deferred taxes for military.
time to work for the rest of the year then quit on Dec 31
Do you two work for Trump supporters? It actually takes a lot of work to even support this (updating payroll software to enable the deferral, an update after December to set things back to normal, some kind of system to get the money back from employees when everything expires) - so I can't see how any company would actually choose to support this unless they're doing it out of blind support of Trump.
All I can say is to set the money aside and don't spend it - that way you can pay it back when the time comes.
Well, I work for the federal government so technically yes. Lol.
