deferred payroll tax implications?

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Gord0n
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deferred payroll tax implications?

Post by Gord0n »

So I'm just wondering, if Trump goes ahead and suspend the payroll tax for the rest of the year, are we still going to have to pay it later? I've seen articles that say "suspend", and to me, that means no repayment. However, "deferred" means it will have to be repaid. If that's the case, what is the point? I make six figures, and if I have to pay 6 months of payroll tax all at once next year, that's a sizeable chunk of change. I guess I'm missing something here? :confused
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Re: deferred payroll tax implications?

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Not a subject for this board until it actually happens.
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Re: deferred payroll tax implications?

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Re: deferred payroll tax implications?

Post by LadyGeek »

The president has signed an executive order. Regardless of future possible legal actions, the payroll tax cut is now in the books.

See: Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster | The White House

This thread is reopened to continue the discussion.

(Thanks to the members who reported the post and noted the executive order has been signed.)
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Cobra Commander
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Re: deferred payroll tax implications?

Post by Cobra Commander »

It only applies to people make less than $100k so you won't benefit or be affected. The strategy is that it puts pressure on Congress to forgive the accrued taxes because no one wants to stick people with a surprise tax bill. I use the word surprise because most people won't save the money in anticipation of repaying the deferred amount.
zrail
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Re: deferred payroll tax implications?

Post by zrail »

IMO no responsible employer is actually going to defer these things because they don’t want to get stuck with the liability if for whatever reason a forgiveness bill doesn’t pass.
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FIREchief
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Re: deferred payroll tax implications?

Post by FIREchief »

zrail wrote: Sat Aug 08, 2020 6:47 pm IMO no responsible employer is actually going to defer these things because they don’t want to get stuck with the liability if for whatever reason a forgiveness bill doesn’t pass.
It doesn't sound like the employers will have a choice with respect to withholding payroll taxes from paychecks.
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Re: deferred payroll tax implications?

Post by sailaway »

zrail wrote: Sat Aug 08, 2020 6:47 pm IMO no responsible employer is actually going to defer these things because they don’t want to get stuck with the liability if for whatever reason a forgiveness bill doesn’t pass.
I don't think they would have a choice, and since the tax bill wouldn't be due until after the election (likely with your 2020 return), the voters might not care.
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Re: deferred payroll tax implications?

Post by jhfenton »

Cobra Commander wrote: Sat Aug 08, 2020 6:44 pm It only applies to people make less than $100k so you won't benefit or be affected. The strategy is that it puts pressure on Congress to forgive the accrued taxes because no one wants to stick people with a surprise tax bill. I use the word surprise because most people won't save the money in anticipation of repaying the deferred amount.
The number being reported is $104,000, but the order actually refers to employees earning less than $4K per standard two-week payroll period or the equivalent for other payroll periods. It doesn't seem to take into account bonuses.
Chuck107
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Re: deferred payroll tax implications?

Post by Chuck107 »

Is the tax on pensions considered payroll tax?

Never thought about it before, but now that this has been signed...
Alas, I find moderation of this forum too restrictive for my tastes, farewell.
joetro29
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Re: deferred payroll tax implications?

Post by joetro29 »

I make 102K annually but about 8500 monthly. Interesting to see if I qualify.
Rainmaker41
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Re: deferred payroll tax implications?

Post by Rainmaker41 »

It looks payroll tax deduction and payment would be deferred to sometime after Dec 31, 2020. So, I would treat those amounts as akin to a 0% interest loan from the government with a corresponding tax liability to be paid at some future date. Unless and until future legislation is passed and signed into law forgiving that tax liability, I would not regard those funds as spendable.

The only impact I see is adding a few entries on our financial spreadsheet to track it and earning a bit more interest at whatever rate our online savings account pays in the meantime.
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Mlm
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Re: deferred payroll tax implications?

Post by Mlm »

Chuck107 wrote: Sat Aug 08, 2020 7:29 pm Is the tax on pensions considered payroll tax?
Payroll taxes are Social Security and Medicare taxes
fourwheelcycle
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Re: deferred payroll tax implications?

Post by fourwheelcycle »

Come on, folks. I hope everybody who is looking forward to a payroll tax cut is also making other plans for their future social security and Medicare benefits.

https://www.reuters.com/article/us-heal ... SKBN20Y351

"If approved by Congress, Trump's proposal would result in a massive, roughly $1 trillion dollar cash injection into the pockets of workers and businesses over the rest of the year, based on a Congressional Budget Office estimate of current projected federal tax revenue. www.cbo.gov/topics/taxes

It would also mean [a trillion-dollar hole] in the trust funds that pay Social Security benefits for retirees and help fund the Medicare healthcare program for Americans over age 65, said Howard Gleckman, a senior fellow at the Tax Policy Center. “What do you do about that?”

U.S. workers and their employers each contribute 7.65% of the employees’ gross pay for Social Security and Medicare through the payroll tax."
Sandwich
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Re: deferred payroll tax implications?

Post by Sandwich »

Rainmaker41 wrote: Sat Aug 08, 2020 7:31 pm It looks payroll tax deduction and payment would be deferred to sometime after Dec 31, 2020. So, I would treat those amounts as akin to a 0% interest loan from the government with a corresponding tax liability to be paid at some future date. Unless and until future legislation is passed and signed into law forgiving that tax liability, I would not regard those funds as spendable.

The only impact I see is adding a few entries on our financial spreadsheet to track it and earning a bit more interest at whatever rate our online savings account pays in the meantime.
+1, I see the possibility of "unintended consequences".

Depending on how this all works out .... the "deferred" payroll tax may end up being "collected" when an affected taxpayer files their 2020 return in Spring, 2021. So the impact could be in the hundreds or thousands of dollars depending on how much one earned during August - December, 2020.

A group that may have a have the biggest surprise is someone who received unemployment compensation during the spring and summer (but did not have any federal income taxes withheld because they needed all the funds for expenses) and then is employed from August - December, 2020.
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Re: deferred payroll tax implications?

Post by egrets »

fourwheelcycle wrote: Sat Aug 08, 2020 7:42 pm Come on, folks. I hope everybody who is looking forward to a payroll tax cut is also making other plans for their future social security and Medicare benefits.

https://www.reuters.com/article/us-heal ... SKBN20Y351

"If approved by Congress, Trump's proposal would result in a massive, roughly $1 trillion dollar cash injection into the pockets of workers and businesses over the rest of the year, based on a Congressional Budget Office estimate of current projected federal tax revenue. www.cbo.gov/topics/taxes

It would also mean [a trillion-dollar hole] in the trust funds that pay Social Security benefits for retirees and help fund the Medicare healthcare program for Americans over age 65, said Howard Gleckman, a senior fellow at the Tax Policy Center. “What do you do about that?”

U.S. workers and their employers each contribute 7.65% of the employees’ gross pay for Social Security and Medicare through the payroll tax."
Yeah, really. I could say a few things about how this tax cut puts money in the pocket of the employed not the people actually hurting, and then in the future Social Security and Medicare and people depending on them take it in the chops, but I guess I won't.
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kelway
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Re: deferred payroll tax implications?

Post by kelway »

joetro29 wrote: Sat Aug 08, 2020 7:29 pm I make 102K annually but about 8500 monthly. Interesting to see if I qualify.
Seems you will... I halfway think you could end up getting this AND a "1200 check" depending on these next days. Considering only oneself, it could be good.

But your kids, Marty... Something has to be done by your kids!
jmw
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Re: deferred payroll tax implications?

Post by jmw »

Couldn't an employer guarantee it will cover the employee's share of the SS taxes if it is not forgiven since chances are pretty good that the deferral will be forgiven? It's like a free raise that employers probably won't have to pay for. Certain employers like government couldn't do that because it would end up being a gift of taxpayer funds if the deferral is not forgiven.
joetro29
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Re: deferred payroll tax implications?

Post by joetro29 »

Did not get the original 1200. Single AF here.
TravelforFun
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Re: deferred payroll tax implications?

Post by TravelforFun »

It's not clear how this payroll taxcut would affect your future SS benefits. SS funds have been taking hits due to higher unemployment rate and now the payroll tax cuts.

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Rainmaker41
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Re: deferred payroll tax implications?

Post by Rainmaker41 »

“The deferral shall be made available...” is ambiguous wording. Are employers required to not withhold, or is this a choice? Whose liability is it; employer or employee?

So many confusing aspects to this. Hmmm.
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teen persuasion
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Re: deferred payroll tax implications?

Post by teen persuasion »

fourwheelcycle wrote: Sat Aug 08, 2020 7:42 pm Come on, folks. I hope everybody who is looking forward to a payroll tax cut is also making other plans for their future social security and Medicare benefits.

https://www.reuters.com/article/us-heal ... SKBN20Y351

"If approved by Congress, Trump's proposal would result in a massive, roughly $1 trillion dollar cash injection into the pockets of workers and businesses over the rest of the year, based on a Congressional Budget Office estimate of current projected federal tax revenue. www.cbo.gov/topics/taxes

It would also mean [a trillion-dollar hole] in the trust funds that pay Social Security benefits for retirees and help fund the Medicare healthcare program for Americans over age 65, said Howard Gleckman, a senior fellow at the Tax Policy Center. “What do you do about that?”

U.S. workers and their employers each contribute 7.65% of the employees’ gross pay for Social Security and Medicare through the payroll tax."
I did a double take when I read this part:
Moody’s Analytics estimated that a full pandemic, with 3 million to 4 million infections globally, might lead the U.S. economy to end 2020 about 1.5% smaller than it was at the end of 2019, ending a decade-long expansion.
We just passed 5 million cases in the US, and are on track to surpass 20 million globally TOMORROW. :shock:
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MP123
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Re: deferred payroll tax implications?

Post by MP123 »

Frankly, I'm not sure that this memorandum is really actionable at this point.

The last payroll tax holiday in 2010 was part of an act by Congress, and it's not clear that the executive branch has the power to do what is proposed here without that.

I don't have a problem with the idea, but I don't think it's a done deal yet either.
netll
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Re: deferred payroll tax implications?

Post by netll »

It looks like unfair for those who earn $4,001 biweekly. They cannot get an interest-free short loan from government.
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Re: deferred payroll tax implications?

Post by wootwoot »

MP123 wrote: Sat Aug 08, 2020 9:25 pm Frankly, I'm not sure that this memorandum is really actionable at this point.

The last payroll tax holiday in 2010 was part of an act by Congress, and it's not clear that the executive branch has the power to do what is proposed here without that.

I don't have a problem with the idea, but I don't think it's a done deal yet either.
The executive didn't have the power to legitimize DACA either but they did. What's done is done and it's the law of the land as of today.
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Re: deferred payroll tax implications?

Post by camillus »

Does anyone know how this affects SECA and quarterly estimates, etc?
A self employed person making 104k/yr would "defer" $5250 between Sept 1 and Dec 31.

Some people have all the luck. Consider this family with stable jobs:

DH makes 50k
DW makes 75k self employed
They contribute ~45k to pretax accounts (HSA, 401k)
Two kids

They received the previous CARES stimulus checks, $3400.
They stand to "defer" $1275 and $3825 because of this executive order, totaling $5100.
Because their AGI MFJ is 80k, they may qualify for any proposed future stimulus checks, possibly another $3400.

They take this 11k and max out two IRAs with change to spare :shock:

(edited for terrible math)
Last edited by camillus on Sat Aug 08, 2020 11:04 pm, edited 2 times in total.
JoeJohnson
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Re: deferred payroll tax implications?

Post by JoeJohnson »

camillus wrote: Sat Aug 08, 2020 10:21 pm Does anyone know how this affects SECA and quarterly estimates, etc?
A self employed person making 104k/yr would "defer" $3978 between Sept 1 and Dec 31.

Some people have all the luck. Consider this family with stable jobs:

DH makes 50k
DW makes 75k self employed
They contribute ~45k to pretax accounts (HSA, 401k)
Two kids

They received the previous CARES stimulus checks, $3400.
They stand to "defer" $950 and $2900 because of this executive order, totaling $3850.
Because their AGI MFJ is 80k, they may qualify for any proposed future stimulus checks, possibly another $3400.

They take this near 11k and max out two IRAs :shock:
Sept - Dec = 33% of the year, not 25%. DH would defer ~$1,275 for example

Why are we assuming self-employed get to skip both employee and employer share of payroll taxes?
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camillus
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Re: deferred payroll tax implications?

Post by camillus »

JoeJohnson wrote: Sat Aug 08, 2020 10:41 pm Why are we assuming self-employed get to skip both employee and employer share of payroll taxes?
Ah yes, my math is wrong. It's late.

Regarding SECA, I'm not sure. I suppose I read some conjecture a few weeks ago about a potential payroll tax cut. I have questions about it and will be curious how it all pays out.
notmyhand
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Re: deferred payroll tax implications?

Post by notmyhand »

Any clue how this impacts people who were working extra hours? My base rate is $3150 every two weeks but I've been pulling in ~4200-4500 checks due to extra hours. I hope I didn't shoot myself in the foot.
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Re: deferred payroll tax implications?

Post by TaxingAccount »

Cobra Commander wrote: Sat Aug 08, 2020 6:44 pm It only applies to people make less than $100k so you won't benefit or be affected. The strategy is that it puts pressure on Congress to forgive the accrued taxes because no one wants to stick people with a surprise tax bill. I use the word surprise because most people won't save the money in anticipation of repaying the deferred amount.
How do you know how much he makes?
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Re: deferred payroll tax implications?

Post by Stormbringer »

I just read the text of this to understand how it affects me and my employees. From what I can see, it sets up a game of chicken between the executive branch and Congress.

First of all it is not a tax cut, it is a tax deferral. The title is "Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster". It doesn't waive the employee's obligation to pay the tax, it just pushes it off until next year.

Second, the memorandum contains this:
Sec. 4. Tax Forgiveness. The Secretary of the Treasury shall explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum.
So basically, they are betting that they can force Congress to ultimately waive the tax rather than have millions of workers face a nasty tax bill next April.
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Re: deferred payroll tax implications?

Post by Wrench »

Rainmaker41 wrote: Sat Aug 08, 2020 7:31 pm It looks payroll tax deduction and payment would be deferred to sometime after Dec 31, 2020. So, I would treat those amounts as akin to a 0% interest loan from the government with a corresponding tax liability to be paid at some future date. Unless and until future legislation is passed and signed into law forgiving that tax liability, I would not regard those funds as spendable.

The only impact I see is adding a few entries on our financial spreadsheet to track it and earning a bit more interest at whatever rate our online savings account pays in the meantime.
So let's see - 7.65% of 1/3 of$100K is ~$2500. At 1% in your online savings account for ~8 month you'll earn < $15 max before you have to repay next April. And that is best case if you earn $100K AND can get 1% return. Does this really make a difference to anyone who earns $100K? Is it worth the hassle of keeping track of it? Given the choice, I will tell my employer just to pay it. If it is eventually forgiven, I'll take the credit on my 2021 tax return.

Edit - Oh and by the way you have to pay taxes on the interest, so that $15 is really only $10 or $12 after tax.
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Re: deferred payroll tax implications?

Post by Watty »

Retired computer programmer here.

One huge problem, especially with all the uncertainty about all the details of how this might work, trying to get payroll systems updated by September 1st. will be very difficult and likely not realistic.

This would impact not just the actual payroll software but also all the accounting software that tracks and reports the related financials.
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Cobra Commander
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Re: deferred payroll tax implications?

Post by Cobra Commander »

TaxingAccount wrote: Sun Aug 09, 2020 4:38 am
Cobra Commander wrote: Sat Aug 08, 2020 6:44 pm It only applies to people make less than $100k so you won't benefit or be affected. The strategy is that it puts pressure on Congress to forgive the accrued taxes because no one wants to stick people with a surprise tax bill. I use the word surprise because most people won't save the money in anticipation of repaying the deferred amount.
How do you know how much he makes?
It's right in the OP "I make six figures..." It's true though that OP could make just under $104K but I assumed the rederence to six figures means more than that.
Rainmaker41
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Re: deferred payroll tax implications?

Post by Rainmaker41 »

Wrench wrote: Sun Aug 09, 2020 6:01 am
Rainmaker41 wrote: Sat Aug 08, 2020 7:31 pm It looks payroll tax deduction and payment would be deferred to sometime after Dec 31, 2020. So, I would treat those amounts as akin to a 0% interest loan from the government with a corresponding tax liability to be paid at some future date. Unless and until future legislation is passed and signed into law forgiving that tax liability, I would not regard those funds as spendable.

The only impact I see is adding a few entries on our financial spreadsheet to track it and earning a bit more interest at whatever rate our online savings account pays in the meantime.
So let's see - 7.65% of 1/3 of$100K is ~$2500. At 1% in your online savings account for ~8 month you'll earn < $15 max before you have to repay next April. And that is best case if you earn $100K AND can get 1% return. Does this really make a difference to anyone who earns $100K? Is it worth the hassle of keeping track of it? Given the choice, I will tell my employer just to pay it. If it is eventually forgiven, I'll take the credit on my 2021 tax return.

Edit - Oh and by the way you have to pay taxes on the interest, so that $15 is really only $10 or $12 after tax.
Oh I agree. I don’t care about the interest, but I’d have to keep the deferred tax money somewhere.

I’m now wondering what employers / payroll providers will actually do. The memorandum is not clear.
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Re: deferred payroll tax implications?

Post by MathIsMyWayr »

Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
egrets
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Re: deferred payroll tax implications?

Post by egrets »

MathIsMyWayr wrote: Sun Aug 09, 2020 7:27 am Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
See what a stupid move this is, as noted by someone else above. Instead of a "payroll tax cut/deferral," they should call it "trash your Social Security/Medicare benefits."
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Re: deferred payroll tax implications?

Post by willthrill81 »

egrets wrote: Sun Aug 09, 2020 10:01 am
MathIsMyWayr wrote: Sun Aug 09, 2020 7:27 am Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
See what a stupid move this is, as noted by someone else above. Instead of a "payroll tax cut/deferral," they should call it "trash your Social Security/Medicare benefits."
Maybe I've missed something, but does a taxpayer deferring SS payments have any impact on that individual's SS benefits down the road?
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Re: deferred payroll tax implications?

Post by sailaway »

willthrill81 wrote: Sun Aug 09, 2020 10:09 am
egrets wrote: Sun Aug 09, 2020 10:01 am
MathIsMyWayr wrote: Sun Aug 09, 2020 7:27 am Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
See what a stupid move this is, as noted by someone else above. Instead of a "payroll tax cut/deferral," they should call it "trash your Social Security/Medicare benefits."
Maybe I've missed something, but does a taxpayer deferring SS payments have any impact on that individual's SS benefits down the road?
If they are deferred, it shouldn't be an issue.

The previous reductions didn't affect benefits.

[political comment removed by moderator prudent]
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Re: deferred payroll tax implications?

Post by Trader Joe »

The implication is that this is great news for American workers and their families.
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FIREchief
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Re: deferred payroll tax implications?

Post by FIREchief »

Stormbringer wrote: Sun Aug 09, 2020 5:11 am I just read the text of this to understand how it affects me and my employees. From what I can see, it sets up a game of chicken between the executive branch and Congress.
Exactly this. Since we were going to throw more federal money into the economy regardless, this just forces the hand on how at least this much of it will be spent. It will be put into the hands of people who work but make less than $104K. There have been worse ways we've spent money. :annoyed
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Re: deferred payroll tax implications?

Post by lazynovice »

“Sec. 3. Authorizing Guidance. The Secretary of the Treasury shall issue guidance to implement this memorandum.”

It will be interesting to see what this guidance says for employers. I can see a situation where employees may choose to continue having the amount withheld so they don’t get hit with an unexpected bill at tax time. While the average Boglehead can understand the interest free loan concept, the average taxpayer does not. They will see this as a decrease to their refund and therefore an increase in their taxes. Very similar thing happened with the reduced withholding under the TCJA. I am still amazed how many people I know celebrate their large refunds every year.
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Re: deferred payroll tax implications?

Post by Rainmaker41 »

willthrill81 wrote: Sun Aug 09, 2020 10:09 am
egrets wrote: Sun Aug 09, 2020 10:01 am
MathIsMyWayr wrote: Sun Aug 09, 2020 7:27 am Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
See what a stupid move this is, as noted by someone else above. Instead of a "payroll tax cut/deferral," they should call it "trash your Social Security/Medicare benefits."
Maybe I've missed something, but does a taxpayer deferring SS payments have any impact on that individual's SS benefits down the road?
The Social Security benefit is technically based on wage history, not tax payment. In common parlance they are connected, but are really separate public taxation and public spending actions. A taxpayer’s W-2 would show the same Social Security taxable wages reported to SSA, but would (if deductions do not take place) show a lower amount of tax paid.
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Re: deferred payroll tax implications?

Post by Alan S. »

Covid is seriously exposing the poor financial management of obligations that existed prior to Covid, aggravating the need to "defer this, defer that" immediately after the start of the pandemic. And no one really knows how long this goes on. Fitch has already warned regarding the US debt spiraling out of control https://finance.yahoo.com/news/united-s ... 48506.html.

Add election year " buy more votes" mentality, and this is all pointing to a generation of austerity on our doorstep. Printing dollars can only go on for so long.
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Re: deferred payroll tax implications?

Post by willthrill81 »

Rainmaker41 wrote: Sun Aug 09, 2020 12:29 pm
willthrill81 wrote: Sun Aug 09, 2020 10:09 am
egrets wrote: Sun Aug 09, 2020 10:01 am
MathIsMyWayr wrote: Sun Aug 09, 2020 7:27 am Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
See what a stupid move this is, as noted by someone else above. Instead of a "payroll tax cut/deferral," they should call it "trash your Social Security/Medicare benefits."
Maybe I've missed something, but does a taxpayer deferring SS payments have any impact on that individual's SS benefits down the road?
The Social Security benefit is technically based on wage history, not tax payment. In common parlance they are connected, but are really separate public taxation and public spending actions. A taxpayer’s W-2 would show the same Social Security taxable wages reported to SSA, but would (if deductions do not take place) show a lower amount of tax paid.
That's what I thought. In the macro sense, people not paying into SS will result in depletion of the trust fund more quickly than otherwise, but in the micro sense, it won't have an impact on an individual's SS benefit as currently defined by law.
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Re: deferred payroll tax implications?

Post by MathIsMyWayr »

willthrill81 wrote: Sun Aug 09, 2020 1:30 pm
Rainmaker41 wrote: Sun Aug 09, 2020 12:29 pm
willthrill81 wrote: Sun Aug 09, 2020 10:09 am
egrets wrote: Sun Aug 09, 2020 10:01 am
MathIsMyWayr wrote: Sun Aug 09, 2020 7:27 am Money flowing into Social Security and Medicare is deferred, but money flowing out is not. :confused
See what a stupid move this is, as noted by someone else above. Instead of a "payroll tax cut/deferral," they should call it "trash your Social Security/Medicare benefits."
Maybe I've missed something, but does a taxpayer deferring SS payments have any impact on that individual's SS benefits down the road?
The Social Security benefit is technically based on wage history, not tax payment. In common parlance they are connected, but are really separate public taxation and public spending actions. A taxpayer’s W-2 would show the same Social Security taxable wages reported to SSA, but would (if deductions do not take place) show a lower amount of tax paid.
That's what I thought. In the macro sense, people not paying into SS will result in depletion of the trust fund more quickly than otherwise, but in the micro sense, it won't have an impact on an individual's SS benefit as currently defined by law.
Like a store cashier stepped away? :wink:
bberris
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Re: deferred payroll tax implications?

Post by bberris »

I think you may be missing something. The executive order is being framed as a "deferral" to make it legal. I don't believe the executive has the power to cut social security taxes; but it can decline to collect them. It pressures congress to actually make it a tax cut. At risk of speculating on the future legislation, I don't see this tax deferral being collected in the future.

As to the depletion of SS reserves, the loss of FICA tax receipts can be made up from general funds. There are warehouses full of general funds.
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FIREchief
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Re: deferred payroll tax implications?

Post by FIREchief »

bberris wrote: Sun Aug 09, 2020 1:47 pm As to the depletion of SS reserves, the loss of FICA tax receipts can be made up from general funds. There are warehouses full of general funds.
In a figurative sense, "warehouses full of paper and ink." :P

Problem #1: printing helicopter money will lead to uncontrolled inflation
Problem #2: inflation is way too low

:confused

(I really don't even try to figure it out any more)
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.
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BogleFanGal
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Re: deferred payroll tax implications?

Post by BogleFanGal »

sounds like this screws over many people who maybe had work the first few months before getting hit by covid impact this summer via layoffs or client losses. They now get no federal unemployment supplement AND have to pay full SS on all earlier earnings - zero support in 2nd half of year. Really don't get the urge to help those already employed vs those out of work. Stupidest program ever.
"Life would be infinitely happier if we could only be born at the age of eighty and gradually approach eighteen." Mark Twain
JoeJohnson
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Re: deferred payroll tax implications?

Post by JoeJohnson »

BogleFanGal wrote: Sun Aug 09, 2020 2:39 pm sounds like this screws over many people who maybe had work the first few months before getting hit by covid impact this summer via layoffs or client losses. They now get no federal unemployment supplement AND have to pay full SS on all earlier earnings - zero support in 2nd half of year. Really don't get the urge to help those already employed vs those out of work. Stupidest program ever.
There's an executive order on the unemployment as well...
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