posted by geeblock

What does the payroll tax EO mean? Is that for business owners or employees? Haven’t had time to look up that one 

It’s essentially eliminating the FICA tax in employees paychecks. I believe it’s around 6.4%. So an extra 6.4% in employees paychecks if you make under $104k. Until the end of Q4. 

Employers can defer their contributions of the tax to a later date, which Trump mentioned may not even happen (as he would eliminate it). 

posted by SportsAndLady

It’s essentially eliminating the FICA tax in employees paychecks. I believe it’s around 6.4%. So an extra 6.4% in employees paychecks if you make under $104k. Until the end of Q4. 

Employers can defer their contributions of the tax to a later date, which Trump mentioned may not even happen (as he would eliminate it). 

When is the end of quarter 4 dec 31?

In other words, you'll be on the hook for them in April.

posted by geeblock

When is the end of quarter 4 dec 31?

Yes

posted by geeblock

What does the payroll tax EO mean? Is that for business owners or employees? Haven’t had time to look up that one 

I believe it means that if you get a paycheck, the federal taxes will not be coming out.

posted by Spock

I believe it means that if you get a paycheck, the federal taxes will not be coming out.

Lol no

posted by SportsAndLady

Lol no

So basically your paycheck would be increased by 6.4 percent ?

posted by geeblock

So basically your paycheck would be increased by 6.4 percent ?

According to CNBC it would also include the Medicare tax, which is 2.9%. If you are self-employed, you would save 12.8 percent of FICA since you pay both employee and employer contributions.

posted by Al Bundy

According to CNBC it would also include the Medicare tax, which is 2.9%. If you are self-employed, you would save 12.8 percent of FICA since you pay both employee and employer contributions.

On top of the 6.4 percent?

posted by Al Bundy

According to CNBC it would also include the Medicare tax, which is 2.9%. If you are self-employed, you would save 12.8 percent of FICA since you pay both employee and employer contributions.

But really we should assume this is only a deferral, like on the corporate side?  POTUS can't suspend or eliminate a tax, so it would take an act of Congress to take you off the hook?

I'm sure this creates a nightmare for companies.  Do they continue taking it out of your check in the event all the back taxes are owed?  Do they give employees that 7.65% and potentially try to get it back later if it's owed?  A lot of these companies are already hurting for cash, and if they had to eat that 7.65% they didn't withhold it could be devastating.

posted by geeblock

So basically your paycheck would be increased by 6.4 percent ?

Probably a little bit less but yes, because that 6.4% will get taxed When it normally wouldn't. So you’ll get 6.4% more in gross pay, and then less income taxes. 

posted by gut

But really we should assume this is only a deferral, like on the corporate side?  POTUS can't suspend or eliminate a tax, so it would take an act of Congress to take you off the hook?

I'm sure this creates a nightmare for companies.  Do they continue taking it out of your check in the event all the back taxes are owed?  Do they give employees that 7.65% and potentially try to get it back later if it's owed?  A lot of these companies are already hurting for cash, and if they had to eat that 7.65% they didn't withhold it could be devastating.

Yeah, they’ll have about 20 days to get clarification. I’m sure it’ll get clarified by then. 

For employees, I am reading it’s an elimination, versus a “deferral” for employers. Employees are most likely off the hook, but we shall see come tax time  

This seems like this wouldn’t include teachers 

posted by geeblock

What does the payroll tax EO mean? Is that for business owners or employees? Haven’t had time to look up that one 

Employees, you will have a little less taken out of your taxes on your paycheck.

posted by geeblock

This seems like this wouldn’t include teachers 

It would include anyone that pays FICA, why wouldn’t it include teachers?

posted by SportsAndLady

Employees are most likely off the hook, but we shall see come tax time 

Yeah, we'll see.  Like glbock mentioned, it doesn't include teachers.  It doesn't, obviously, do anything for people already out-of-work.

I don't know how anyone is going to try to reverse or overrule the POTUS on this because voters will punish them.  But it severely complicates any other stimulus deal.  Or you give additional money to people who are unemployed because people who are working already got that 7.45%, and those optics aren't great, either.

Anyway, 2020 keeps delivering - the year politicians literally started printing money and fighting over who's votes would be bought and for how much.

posted by jmog

It would include anyone that pays FICA, why wouldn’t it include teachers?

Since we pay into strs and not social security and are public employees.. I have no idea I don’t see any payroll tax on my check just fed/state tax and income tax outside of the Medicare and insu

posted by geeblock

Since we pay into strs and not social security and are public employees.. I have no idea I don’t see any payroll tax on my check just fed/state tax and income tax outside of the Medicare and insu

oh they take plenty, you dont pay SS but you do pay everything else

posted by SportsAndLady

Lol no

THen what does it all mean smartass?

posted by Spock

THen what does it all mean smartass?

He and others have been explaining it. Just fucking read the last several replies. 

posted by geeblock

Since we pay into strs and not social security and are public employees.. I have no idea I don’t see any payroll tax on my check just fed/state tax and income tax outside of the Medicare and insu

Well, yeah. The tax already doesn't come out of your paychecks, so you won't "benefit" from this portion of the EO. But it's not like it's hurting teachers. 

CC--why would you think this means you don't pay federal taxes? You will always pay federal and states taxes on income. This payroll tax relief eliminates the FICA taxes for a short period of time (4 months) and TBD whether it's owed back. My guess, and a few people I have asked in the accounting industry, say they won't make people pay this back (but will ask employers to).

That was posted after mine so no he wasnt.  

posted by Spock

That was posted after mine so no he wasnt.  

There were a dozen posts discussing what it all meant after you were wrong about the no federal income tax then you come on here what’s it mean then smartass 

posted by geeblock

Since we pay into strs and not social security and are public employees.. I have no idea I don’t see any payroll tax on my check just fed/state tax and income tax outside of the Medicare and insu

You are right. Having a much better pension than SS makes up for it I guess.