posted by geeblockWhat 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 SportsAndLadyIt’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 geeblockWhen is the end of quarter 4 dec 31?
Yes
posted by geeblockWhat 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 SpockI believe it means that if you get a paycheck, the federal taxes will not be coming out.
Lol no
posted by SportsAndLadyLol no
So basically your paycheck would be increased by 6.4 percent ?
posted by geeblockSo 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 BundyAccording 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 BundyAccording 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 geeblockSo 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 gutBut 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 geeblockWhat 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 geeblockThis seems like this wouldn’t include teachers
It would include anyone that pays FICA, why wouldn’t it include teachers?
posted by SportsAndLadyEmployees 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 jmogIt 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 geeblockSince 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 SportsAndLadyLol no
THen what does it all mean smartass?
posted by SpockTHen what does it all mean smartass?
He and others have been explaining it. Just fucking read the last several replies.
