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So, you getting an extra 6.2% in your next paycheck?


2Far
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11 hours ago, 2Far said:

So, you getting an extra 6.2% in your next paycheck?

I hope the company folks ask and I will say "no" as I have spent years getting my taxes straight and would hate getting hit with extra taxes later down the line :(  Likewise, I may be above the cut-off, but the details of the "plan" are very vague.

10 hours ago, Dottles said:

Honestly? How fucking stupid is this? 

Very.  Not by default, but by execution and overall conceptualization.  Again, poor management.

10 hours ago, Philander Seabury said:

Yeah. The people who need help are not getting a paycheck. 

Even if they are, they are also the ones perhaps less likely to save the $$$ so they can pay it later (or able to absorb the hit next year). 

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4 minutes ago, bikeman564™ said:

this is a stupid f&*#ing idea

Potentially.  I think the gamble is you put it in place, get companies to do it, and to prevent massive pain to workers, Congress has to pass a complementary law that "forgives" the taxes, so folks end up not owing more later on.  Politics.

The stupid part is the screwing with the Social Security funding piece.  It potentially weakens SS earlier rather than strengthening it long term.

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1 minute ago, Razors Edge said:

Congress has to pass a complementary law that "forgives" the taxes, so folks end up not owing more later on.  Politics.

The stupid part I was referring too. If people need money that bad now, they'll be short next year when their employers take double payments. Ultimately it balances oot (assuming no forgiveness) but it's stupid...very stupid.

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Mrs. Grumpy received an e-mail from her HR saying that they're not participating.  

The only communications I got from HR was about the $300/week thing.  Since we're furloughed only 1 day, we don't make enough to qualify.  The $600/month was nice.  I banked most of it but used one check to purchase a new dishwasher.  

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7 minutes ago, bikeman564™ said:

The stupid part I was referring too. If people need money that bad now, they'll be short next year when their employers take double payments. Ultimately it balances oot (assuming no forgiveness) but it's stupid...very stupid.

But that's the gamble.  So, only stupid if it loses (no Congress action), and by then, an election is over and folks got a temporary kick to their paychecks ahead of it.  If he wins re-election, it can be sorted out (or ignored), and if he loses re-election, it's someone else's problem.  In either case, it's a gamble with other people's money for the most part.  Easy to see why it was done.

But outside the political bit, it is the "mess with SS without being very careful" part that will be an issue - but again, that's nothing too new with the SS dollars.

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It appears that most companies are opting out of the voluntary payroll tax deferral program because they would have to stop taking the 6.2% (does it include the additional 1.45% for Medicare?) for four months, but then take DOUBLE for four months.  This basically means people wouldn't be spending the savings because they have to start paying it back at the beginning of 2021.

Additionally, the companies would have to adjust their payroll software for the deferral, then for the doubling, then back to normal.

And what happens if someone gets the deferral for 4 months in 2020, quits in January, then is rehired in March.  Does he have to pay double for Mar. Apl. May. Jun.?  What a headache for payroll!

This wasn't thought through by Trump.  He's forcing federal agencies to do it.  He's going to be paying a lot of overtime to payroll departments.

 

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Nope. For clarification purposes, the executive order applies ONLY to FICA (SS) withholding and not income tax withholding. It also does not involve the 1.45% Medicare withholding. Any funds that are withheld in 2020 must be repaid in 2021, unless legislation is passed by Congress that exempts the repayment. Most employers are opting to not participate as they would  be on the hook for the employee’s withheld amount PLUS the matching amount that the employer is required to pay into SS. Trump has said that if he wins election that he will work to do away with this FICA tax in his second term, effectively killing Social Security. Why he thinks this is something to campaign on is against all logic. Calling it Payroll tax is disingenuous as most Americans think it applies to income tax withholding when it does not.

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1 hour ago, MickinMD said:

Additionally, the companies would have to adjust their payroll software for the deferral

Please.... Change one variable that is maintained in a configuration table.

10 seconds BAM!

 

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Just now, Prophet Zacharia said:

And yet it hasn’t gotten a ton of discussion that I’ve seen 

Maybe because enough people understand that there's no way Congress will allow him to make it permanent.  And the ones who don't, or don't understand why killing Social Security is bad are voting for him no matter what he does.

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On 9/3/2020 at 8:10 AM, Razors Edge said:

A holiday you get off.  This is more giving you Monday off but making you work Saturday in it's place. Kicking the can.

Ed zachary what were doing on the project next week. Our hourly workers don’t get holiday pay. 

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