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Started By
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re: GEOTUS Payroll Tax Holiday?
Posted on 8/11/20 at 1:38 pm to LSUFanHouston
Posted on 8/11/20 at 1:38 pm to LSUFanHouston
quote:
It's going to create so many problems that most companies will say F it and not go along, which is what I am advising my clients to do currently, unless we get new information.
I don't blame you. What a headache.
0
Posted on 8/11/20 at 1:42 pm to VoxDawg
quote:
What Americans don't realize is that when your employer is calcuating how much it costs to pay you annually, they're figuring in that other half that they pay for you. On the books, you cost them $107,500. (At a minimum. The part of your healthcare insurance and other benefits get factored into your cost of employment, too).
we refer to that as labor burden. depending on the employee, burden includes:
employee portion of FICA
Employee portion of Medicare
FUTA (federal unemployment)
SUTA (state unemployment)
workers comp
other insurances
401k match
employer health insurance premium portion
we can range from 28-33% burden, meaning that for every $1.00 that an employee gets on their check that we pay another $0.28-0.33. IE, employee makes $100k/y we pay $128k-133k for said employee
Posted on 8/11/20 at 1:51 pm to Epic Cajun
Didn't the President say this would be retroactive to July 1st?
I have read September in a few articles. Which is it?
and allow me to tack on to the income questions/discussion-
Lets say your biweekly gross is $4001, but because of pre-tax deductions your Fed Taxable Gross biweekly income is $3999...I assume you meet the criteria for the holiday?
I have read September in a few articles. Which is it?
and allow me to tack on to the income questions/discussion-
Lets say your biweekly gross is $4001, but because of pre-tax deductions your Fed Taxable Gross biweekly income is $3999...I assume you meet the criteria for the holiday?
Posted on 8/11/20 at 1:58 pm to prplngldtigr
quote:I would assume no, but I don't know for certain. It is worded that pre-tax bi-weekly income is generally less than $4000.
Lets say your biweekly gross is $4001, but because of pre-tax deductions your Fed Taxable Gross biweekly income is $3999...I assume you meet the criteria for the holiday?
quote:Everything that I've seen is September 1-December 31. Maybe the unemployment benefit is back dated through July 1st? I'm not sure.
Didn't the President say this would be retroactive to July 1st?
I have read September in a few articles. Which is it?
Posted on 8/11/20 at 2:01 pm to Dixie Normus
quote:
Your income does not increase. That paragraph is flat wrong.
It’s insane that the Baton Rouge Business Report doesn’t understand basic tax principles.
Posted on 8/11/20 at 2:03 pm to tigeraddict
quote:
we can range from 28-33% burden, meaning that for every $1.00 that an employee gets on their check that we pay another $0.28-0.33. IE, employee makes $100k/y we pay $128k-133k for said employee
Wow, so my WAG on $130k for the $100k salary was pretty spot on.
Posted on 8/11/20 at 2:14 pm to Quidam65
quote:
It wouldn't matter if the payroll tax was permanently at zero or at near 100% -- taxable income stays the same.
This isn't completely correct in all circumstances - read my earlier explanation.
Posted on 8/11/20 at 2:15 pm to Epic Cajun
quote:
How in the wide world of frick would this be legal? For them to not pay back to employees funds that were collected and not paid in the form of taxes? They most assuredly would owe those funds back to the employee.
Well if the employer forwarded them to treasury, I could see employer telling the employee "take it up with them, we are only the withholding agent".
Posted on 8/11/20 at 2:17 pm to LSUFanHouston
quote:After being told to defer withholding? Interesting
Well if the employer forwarded them to treasury, I could see employer telling the employee "take it up with them, we are only the withholding agent".
Posted on 8/11/20 at 2:18 pm to Epic Cajun
quote:
How is not withholding the employee portion risky? The risk lies with the employee, not the employer at that point, right?
Under current law, no. The employer is responsible for "correct" withholding and reporting. Ultimately, it is their burden to remit. If they don't remit, they, not the employee, are held responsible.
This happens often when a worker is reclassified, forcibly, from a contractor to an employee. The employer is hit with back taxes owed on both halves of FICA.
There's nothing in current law that puts this back on the employee. Not to say that could not change, but currently, all the risk is with the employer.
It's poor "legislation".
Posted on 8/11/20 at 2:19 pm to Epic Cajun
This is why I think they bank it, and wait to see if it's totally forgiven as MAGA 2.0.
Posted on 8/11/20 at 2:21 pm to Epic Cajun
quote:
How does this and the part that you quoted seem to be optional? Also the salary "requirement" is 104k, not 100k.
It might not be optional. Like I said, that's my interpretation, because otherwise, Trump just gave a massive FU to every employer in this country.
If I'm an employer, I'd rather deal with this issues of withholding too much, instead of withholding not enough.
Hopefully in weeks ahead, we will get some guidance.
$4,000 on biweekly, equivalent amount for other payroll periods, so yes, that might work out to a little more than 100K. Was using 100K for ease of conversation.
Posted on 8/11/20 at 2:23 pm to prplngldtigr
quote:
Didn't the President say this would be retroactive to July 1st?
I have read September in a few articles. Which is it?
EO is clear... Sept 1.
quote:
Lets say your biweekly gross is $4001, but because of pre-tax deductions your Fed Taxable Gross biweekly income is $3999...I assume you meet the criteria for the holiday?
EO says on pre-tax basis.
Posted on 8/11/20 at 2:26 pm to Epic Cajun
quote:
After being told to defer withholding? Interesting
This is the same government that for years referred to the ACA issues as a "penalty" and then somehow years after the legislation was written, got it changed over to a "tax" to meet constitutional burden.
I don't put anything past them. Especially if:
1) The EO is thrown out
2) In January we have President Biden and a Democrat-controlled congress.
I'm just saying... beware.
Posted on 8/11/20 at 2:42 pm to LSUFanHouston
quote:I think that's what's going to happen per this:
Hopefully in weeks ahead, we will get some guidance.
quote:
Sec. 3. Authorizing Guidance. The Secretary of the Treasury shall issue guidance to implement this memorandum.
Posted on 8/11/20 at 2:44 pm to Epic Cajun
quote:
I think that's what's going to happen per this:
I just don't see how Mnuchin and gang can regulate their way out of these issues. The law is clear.
If they do, then I'll change my tune.
You have a LOT more faith in fedgov than I have, that's for sure.
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