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Payroll Tax Deferral

Gonolz

HR Legend
Aug 6, 2002
22,750
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A friend told me that his latest paycheck did not withhold payroll tax. Has anyone else seen this "benefit" yet?

It is going to be a total shitshow when people learn they have to pay it back ... after the election.
 
Haven't noticed anything, but yeah, this is going to be a very big problem next year when all those back taxes come due.
 
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Best thing for everyone (though it requires trust) is for employers to withhold the money in escrow until it gets figured out. If it needs to be paid, teh employee doesn't have to worry about paying it back. If it doesn't, then the employees get a nice little bonus check
 
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Yup, my paychecks are unnecessarily fatter until December...after which, I will be ready to pay it all back.

Homeless person, "May I have $10?"
Govt, "Most certainly, but I expect you to pay that back at the end of the day".
 
Think about this though, what if Congress forgives the debt for those who participated? Employees of those who participated would get to keep that free money, and those who didn't missed out. Or do you think if Congress forgives it, they would also write checks to non-participants?
 
I elected not to do it.

So, you actually had a choice? I'm hearing that most employers are saying no participation and those who do participate make it mandatory. I have not yet heard of an employer who lets independent decisions to participate. It all seems like a huge accounting nightmare for employers who do participate, even more so if they let individual employees choose.
 
Think about this though, what if Congress forgives the debt for those who participated? Employees of those who participated would get to keep that free money, and those who didn't missed out. Or do you think if Congress forgives it, they would also write checks to non-participants?

Any easy way to include on that law something so people can file a credit for 2021 returns in 2022 if they do that? Shouldn't be too tough since IRS gets W-2 data from all active employers?
 
So, you actually had a choice? I'm hearing that most employers are saying no participation and those who do participate make it mandatory. I have not yet heard of an employer who lets independent decisions to participate. It all seems like a huge accounting nightmare for employers who do participate, even more so if they let individual employees choose.
Yeah. I work for a small association with 5 full time employees. The head met her withhold this month. I emailed our payroll person and said if I have a choice, no thanks.
 
Think about this though, what if Congress forgives the debt for those who participated? Employees of those who participated would get to keep that free money, and those who didn't missed out. Or do you think if Congress forgives it, they would also write checks to non-participants?
Wasn’t that Trump’s plan in the event he is reelected ? I did a great thing but the evil Dems want to make you pay it back!

My company didn't participate either.
 
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Don't know what your friend's income is, but after you reach $137,700 for the calendar year, you've reached your maximum for SS withholding, and only Medicare withholding continues after that. Wanted to make sure it wasn't as simple as that.
 
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I hope my employer chose not to participate. There will be so many surprised people next year.

People won’t be surprised. Most people are well aware that it will be paid later. A lot of people don’t want to participate because they don’t need the money.
 
People won’t be surprised. Most people are well aware that it will be paid later. A lot of people don’t want to participate because they don’t need the money.
My understanding is the employer is on the hook if not repaid (employment separation) so why would an employer participate?
 
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Don't know what your friend's income is, but after you reach $137,700 for the calendar year, you've reached your maximum for SS withholding, and only Medicare withholding continues after that. Wanted to make sure it wasn't as simple as that.

When did the SS max raise from $90,000 to $137,700? I don't make enough for it to concern me, that's probably why I missed the change.
 
Think about this though, what if Congress forgives the debt for those who participated? Employees of those who participated would get to keep that free money, and those who didn't missed out. Or do you think if Congress forgives it, they would also write checks to non-participants?
Congress will not forgive it. It will be after the election so they won't have to answer to anyone.
 
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