Yes, it's just that your employer is not deducting more than you owe, hence the tax refund at the end of the year. And you won't be giving the government an interest-free loan every week.
I'm not so sure that's true. My understanding is that Trump is allowing "employers to defer payment of the employee portion of payroll tax", which means that you would still have to withhold income tax from your paycheck (FICA, federal, and state taxes), but the employer does not have to remit the taxes until a later date if they elect to do so. It essentially allows business to have more cash in the near-term, but they have to be careful because eventually they will have to pay the tax when it becomes due. Please correct me if I am wrong.
All the taxes that typically get taken out besides income tax ( FICA, Medicare, I think there’s another stupid one) won’t come out. Your net pay will go up probably significantly
Yes. Some people will find that option attractive though and would rather have the money now for present expenses. The IRS also has options for payment plans, which while not ideal, still give you time to get things back together.
Being in debt but able to pay bills and live inside a building is a much better situation than trying to start over as a homeless person.
There was some fear mongering from lefty rags that employers would still withhold it so they don't end up on the hook if you leave the job, but my guess is Trump will have the IRS work a repayment provision into the 1040 for 2021. There's already a way to pay these taxes on the 1040 if you're self employed, or get a refund if you make over the SS cap through multiple jobs.
If it gets suspended, what does that mean for my paycheck?
Means you keep more of what you make.
Yes, it's just that your employer is not deducting more than you owe, hence the tax refund at the end of the year. And you won't be giving the government an interest-free loan every week.
But you can choose your withholdings (allowances). I don't see how this helps the average worker. I'm happy to be wrong.
I'm not so sure that's true. My understanding is that Trump is allowing "employers to defer payment of the employee portion of payroll tax", which means that you would still have to withhold income tax from your paycheck (FICA, federal, and state taxes), but the employer does not have to remit the taxes until a later date if they elect to do so. It essentially allows business to have more cash in the near-term, but they have to be careful because eventually they will have to pay the tax when it becomes due. Please correct me if I am wrong.
No fed tax. Still FICA I believe
correct, would take an act of congress to touch those
Payroll taxes are FICA and Medicare if I’m not mistaken
FICA is Social Secuirty (6.2%) and Medicare (1.45%).
All the taxes that typically get taken out besides income tax ( FICA, Medicare, I think there’s another stupid one) won’t come out. Your net pay will go up probably significantly
But they’re only deferred, so you’re getting more money now but going to have a pretty big bill at the end of the year.
You’re right- some places are calling them suspended, some are calling them “cuts” and then later in the article calling them deferrals.
Fake Fox News suggested he might campaign on cancelling them which would be great.
Yes. Some people will find that option attractive though and would rather have the money now for present expenses. The IRS also has options for payment plans, which while not ideal, still give you time to get things back together.
Being in debt but able to pay bills and live inside a building is a much better situation than trying to start over as a homeless person.
That’s true. I just want to be able to opt out because I highly doubt even a solidly Republican Congress will approve of actually canceling the taxes.
There was some fear mongering from lefty rags that employers would still withhold it so they don't end up on the hook if you leave the job, but my guess is Trump will have the IRS work a repayment provision into the 1040 for 2021. There's already a way to pay these taxes on the 1040 if you're self employed, or get a refund if you make over the SS cap through multiple jobs.