logo
Welcome Guest! To enable all features please Login or Register.

Notification

Icon
Error

Login


Options
View
Go to last post Go to first unread
eglanchamp  
#1 Posted : Tuesday, August 03, 2021 12:51:21 PM(UTC)
eglanchamp

Rank: Member

Groups: Registered
Joined: 6/28/2021(UTC)
Posts: 16
Australia
Location: Perth

Am I the only one who thinks Trump's payroll tax deferral is going to be a mess?

Beginning tomorrow, September 1, employers can opt to not withhold payroll tax from employees' paychecks if they meet the income guideline (basically earning less than 100K/year). The problem is it is only a tax deferral. Those taxes still need to be paid by next April. If an employer does participate, they will also start taking out extra money beginning January 1 to make up that money.

So folks may get a break now but they'll get hit with double taxes at the start of the year. I guarantee 99.9% of people won't understand or prepare for that. They'll think they're getting a windfall and spend the extra money and then be hurting in January when not only does the regular tax come back but they also have to repay the tax for the previous 4 months.

Fortunately, many employers have already announced that they will opt out of the deferral and will keep collecting the tax as usual.

If you do get the deferral, I'd recommend parking that money in savings so that you're ready in January when your tax shoots up and your paycheck drops.
metcalcon  
#2 Posted : Wednesday, August 04, 2021 4:40:49 PM(UTC)
metcalcon

Rank: Newbie

Groups: Registered
Joined: 8/4/2021(UTC)
Posts: 6
United Kingdom

Will Trump's payroll tax deferral lead to turmoil?
tweaslerd  
#3 Posted : Wednesday, August 04, 2021 5:39:21 PM(UTC)
tweaslerd

Rank: Newbie

Groups: Registered
Joined: 8/4/2021(UTC)
Posts: 5
United Kingdom

I don't know, I heard that on Sept. 1, employers can waive payroll tax withholding from employees' paychecks if they meet income standards.
milleryz  
#4 Posted : Wednesday, August 04, 2021 5:54:10 PM(UTC)
milleryz

Rank: Newbie

Groups: Registered
Joined: 7/20/2021(UTC)
Posts: 3
United States

You'll be able to tell exactly when you'll get your first paycheck, including the days of September. I have seen that some companies allow you to opt-out of deferrals. But people who work for the federal government apparently have no choice. They have to participate whether they like it or not. If re-elected, Trump said he would forgive the delay. But it seems to me that Biden will do the same. I needed to calculate each employee's salary since I didn't have time to do so. Because of the dire situation, both in the world and in my company, I have turned to https://mercans.com/solutions/mercans-global-payroll-solutions-hrms/. They handled it perfectly.
eglanchamp  
#5 Posted : Sunday, November 28, 2021 9:18:49 PM(UTC)
eglanchamp

Rank: Member

Groups: Registered
Joined: 6/28/2021(UTC)
Posts: 16
Australia
Location: Perth

I've been very actively following the news in America about the wage tax deferral. I thought there would be a strong public reaction to it. Although I'm aware that I don't see the situation the same way from the outside. I live in London, and I've been employed all my life. As far as I can remember, I've never had a problem with withholding taxes or anything like that, although maybe I just got lucky. My girlfriend at work has an interesting system with earnings. They have the administration calculate it through https://www.payrollindex.com/payroll-services/. I was surprised when I heard about it, it was just the first time I heard that instead of a particular department in the organization, an outside company does the payroll. I think that's cool.
Users browsing this topic
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.