IRS tells companies to not take out Social Security taxes from checks following presidential order

[sl8]

From https://www.thedenverchannel.com/news/national/irs-tells-companies-to-not-take-out-social-security-taxes-from-checks-following-presidential-order

IRS tells companies to not take out Social Security taxes from checks following presidential order

By: Justin Boggs
Posted at 5:34 PM, Aug 28, 2020 and last updated 8:49 PM, Aug 28, 2020

The IRS clarified on Friday that companies will be obligated not to take Social Security taxes from paychecks starting next week running through the end of the year.

Nearly all Americans are taxed 6.2% per check to go toward Social Security. For now, barring any action from Congress, most Americans will see larger paychecks through the end of the year. The guidance is based on an executive order signed earlier this month by President Trump in hopes of stimulating the economy.

The Social Security tax deferment is applicable to workers who make up to $4,000 on a bi-weekly basis. Those making more than $4,000 every two weeks will continue to have their Social Security taxes withheld from checks.

The deferment is not an actual tax cut, and because the deferment was done via executive order rather than an act of Congress, the taxes will need paid back by April 30, 2021.

[...]

[Thekaspervote]

1. Except it isn't a stimulating the economy it's about killing SS

[Captain Zero]

6. When Biden wins, it sets him up as a taxing Democrat when they have to pay it back next April

If Trump wins he won't pull it back, he will be an anti-tax hero, and it will starve Social Security.

I think that is the net effect of the EO.

[Hoyt]

10. Biden and Democrats will be forced to make the 5 month "deferral" permanent, or face

the wrath of workers. Now, Biden and Democrats could -- and probably would -- take general funds and replace the losses in the SS fund.

[maxrandb]

17. Biden needs to make sure

That the missing funds will come from the DOD Budget, and from funds recovered from the Donnie Dipshit family through fines for fraud, RICO and corruption trials.

Let the defense contractor's suck on that for a while.

Also, it needs to be made clear that federal dollars going to the States will be limited to the amount of funds they pay in... and that the savings from that will be used to make Social Security and Medicare whole.

In addition, the Medicare and Social Security fund will require that those making over 500K annually are now subject to the FICA Funding.

[Hoyt]

22. Good luck with that. One of the first things Biden is going to have to do is raise taxes on just

about everyone just to get us through the CV19 mess. Trying to get those making over $500K to pay an additional 16 percentage points to SS and Medicare is practically impossible.

Don't care for defense spending either; but, trump has probably made it more important than ever. He's ticked off every country, not just our so-called "enemies."

[Autumn]

2. the taxes will need paid back by April 30, 2021.

Suckers!!!!!

[Me.]

3. A Cruel Joke On Those Who Earn Less

[highplainsdem]

4. Most employers DON'T want to stop withholding that tax, because they're setting their employees up

for a large tax bill next year.

So now Trump is trying to order this done, through the IRS.

[JustGene]

24. Companies will have to collect this

"Payday Loan" version of a tax break

[Squinch]

5. So, in other words, Donny Bodybags is forcing those who make less than $2000 per week

to go into substantial debt without actually letting them know they will be going in debt. That means they'll spend the money and be caught short handed when it is due back, and no doubt they will then be charged interest while they repay the debt.

[SharonClark]

14. The employers should be obligated to explain

it to their employees as clearly as you did.

[Akacia]

7. So any gain I really should put into the bank since it will need

to be paid back in 2021. Not to mention what it will do to funding SS what a dumb idea.

[Botany]

8. Trump is working for Putin and Putin wants to ruin America.

The dismantling of the USPS and now trying to bankrupt the Social Security trust fund
add in pandemic illness for which we have no cure for or a vaccine to prevent the disease
and we are really fucked. Good job Donny.

[Takket]

9. This will be a disaster.

Bush did the same thing. Gave everyone e $600 and no one knew until next April that they had to pay that money back. A lot of people aren’t going to have it and they are going to end up having wages garnished and/or prosecuted by the IRS. And the money they don’t pay back is going to leave SS short in funds. A disaster in both ends and all by design.

[bullimiami]

11. FINE. Come Jan 21 we pass a law that the .1% gets a special wealth tax to pay it all back.

Or maybe just an executive order since that seems to suit the republicans so well.

[SharonClark]

15. I like that idea.

[dickthegrouch]

16. Excellent suggestion /nt

[maxrandb]

19. Why Not an Executive Order requiring

Employers withhold 10% for those making over $250K a year?

Who needs Congress anymore when you have a King?

Hell, why not just tell the IRS via Executive Order to require Investment Fund Managers to assess a 10% withholding on all stock sales?

Why the fuck not?

Refresh my memory, isn't fascism partly taking control over businesses?

[The Velveteen Ocelot]

12. Sounds like employers have the option of not withholding

but not that they are required not to do it. If that's the case I wonder if they will ask employees whether they want the tax to be taken out now or later, since it will have to be paid back anyhow (double withholding to make up for the four months of none). This is such a stupid idea, but what do we expect?

[Iliyah]

18. Let the employees know what is at stake . .

SSI, Medicare, Medicaid ..

Most employees know someone who depends on these programs.

[maxrandb]

20. That's not how the OP is worded

It says the IRS is telling employers they are "obligated" to not withhold the tax.

[The Velveteen Ocelot]

23. Guess so -

I'd read it as "not obligated to" instead of "obligated not to" - haven't had enough coffee yet. But I'm sure employers will be notifying their employees that they will have to pay the money back, double for four months, next year. And don't you always have the option to change your own withholding just by giving your employer a new W-4? That's what I'd probably do if I were still working, rather than have to pay back double.

[Arazi]

25. Nothing is clear. I doubt most employers will withhold since the IRS is sketchy about repayment

https://www.forbes.com/sites/kellyphillipserb/2020/08/28/questions-remain-after-irs-rolls-out-guidance-on-payroll-tax-deferral/

snip....That’s the repayment obligation. And what it says is that the employer must recover those taxes from employees over a few months – or interest, penalties, and additions to tax will become due. Ouch, right?

And what if the employee balks at repayment? According to the Notice, that doesn’t matter. It makes clear that “Taxpayer may make arrangements to otherwise collect the total Applicable Taxes from the employee.“

But what if the employee leaves the company? What if the employee doesn’t make enough money to ratably pay back the tax? The Notice doesn’t address what happens in those circumstances, but it would appear that the obligation to make those payments remains with the employer.

[Baked Potato]

13. Republicans saying: You want some extra money, here ya go.

Disgusting trick on workers. When Joe Biden takes over he should make it so the money doesn’t get paid back by hitting up workers. Biden should shift money from any project or contract Trump started. And, raise taxes back to pre-Trump levels to give a bonus to the same workers.

[maxrandb]

21. DOD seems to have billions laying around for a wall

Maybe Lockheed Martin can hold a bake sale.

[lostnfound]

26. What about people who lose their jobs in November or December?

Does the employee have to pay it back after they’ve left?

[kentuck]

27. The Executive Branch does not set the tax policy for this country.

Companies should read the law and the Constitution before they do something foolish.

[GusFring]

28. Is this legal? Sounds like a way to sidestep congress? If it's illegal, Pelosi needs to impeach agai

[Vinca]

29. The key word here is "deferment." Companies would be wise to set the loot aside because the

IRS will come knocking at some time in the future. This is so stupid and entirely politically motivated.