Payroll Tax Deferral

[char_]

Politics aside....

How is everyone planning to deal with this? If I understand correctly, we get a deferral until January and then get a smaller pay check then as the employer starts making up the difference?

Bank on forgiveness? Stick the difference in a savings account to cover the lower paycheck starting in January? Ask your employer not to defer? Some sort of lump sum payment back to the employer with the saved money?

My suspicion is that most companies will not defer....

[Conundrum]

Quit your job Dec 31 and stick your ex employer with the tab.

[old goat]

Goddamn govt fucking with my Medicare and Social Security.

[Conundrum]

Get off Goat's yard.

[BobMc]

I'm not deferring and my employees are smart enough to see this as the scam it is.

[DJSapp]

Invest it in bitcoin

[char_]

I guess I forgot hookers and blow.

[wooley12]

Get off Goat's yard.

Haha. Sad, you won't have a yard because you let them take it. Jfc, gov't 3 card Monte.

[Benny Profane]

Vote for Trump so he'll make it permanent.

[highangle]

I'm not deferring and my employees are smart enough to see this as the scam it is.

Finally, a chance to agree with BobMc!

[billyk]

Quit your job Dec 31 and stick your ex employer with the tab.

Yeah, I don’t think that will work. The IRS will collect it when you file, if it isn’t waived by congress.

[Diamond Joe]

Invest it in bitcoin

This financial advice checks out.

[Core Shot]

Quit your job Dec 31 and stick your ex employer with the tab.

Lol. This is the employer fear.
FYI the small biz thread has some interesting poop from the employer side.
I’m making employees sign a contract that I can deduct the unpaid tax from their last paycheck. Will pay it back if congress forgives it.
But I’m on the hook for this drumpf dreck.

Vote for Trump so he'll make it permanent.

Sadly that won’t fix it.

Drumpf wins. House refuses to forgive the tax and let him win again.

It’s a soup sandwich with a sriracha shit sauce.

For employees. My advice is take the deferral but save the extra money. Worse case you pay it back next year.
Best case it’s forgiven.

Worst shitty outcome is you don’t defer and congress forgives deferrals but not those that paid in.
Take the deferral but be prepared to pay up and hope it’s forgiven

[huckbucket]

Does it matter if you maxed out SSI contribution for the year?

Looks like there's a cap too. Applies only to those whose bi-weekly paychecks are less than $4,000, the equivalent of $104,000 a year.

[Conundrum]

My comments are tongue in cheek. Core Shot is correct on this one. Not sure of the accounting or legality, if I had employees I’d defer but bank it on employees’ behalf. If no forgiveness, you’ve got it covered. If forgiven, a new year bonus for them. No reason to fuck anyone over because people are politrickin’.

[neufox47]

Does it matter if you maxed out SSI contribution for the year?

Looks like there's a cap too. Applies only to those whose bi-weekly paychecks are less than $4,000, the equivalent of $104,000 a year.

Yea, cap will income out the dentists. Everyone else, my advice would be to pay down credit card debt with the extra dollars if you have any. 0 % loan beats whatever your cc charges. Even if you have to pay it back, you are still better off. If you are debt free put it in your rainy day fund, if they forgive it, great. If not you don’t have to cancel that winter vacation to pay it back.

Worst thing you can do from a personal finance position is what would benefit the economy the most, go blow it on expensive dinners or other Made In America disposable goods.

[rideit]

Wifey is a CPA, she looked into it. As of the wording today, the employers are liable if the employee ditches. As she pointed out, whatever decision is made by ADP will be followed by virtually everybody.
This shit is SO transparent...

[billyk]

Wifey is a CPA, she looked into it. As of the wording today, the employers are liable if the employee ditches. As she pointed out, whatever decision is made by ADP will be followed by virtually everybody.
This shit is SO transparent...

Huh. I heard different, but your source is probably better than mine.

[Conundrum]

Wifey is a CPA, she looked into it. As of the wording today, the employers are liable if the employee ditches. As she pointed out, whatever decision is made by ADP will be followed by virtually everybody.
This shit is SO transparent...

This is why I said quit 12/31 if you were worried about it. Employers are on the hook. Politics keep testing the conservative side...transparent indeed.

[JPaul]

Good news is Evictions are also postponed until Jan, so use the money to start building out your van.

Then, give notice mid-December, obvs.

[Core Shot]

ADP has no clue how to implement this, so no deferral this week paychecks

Heres a quick contract i drew up for those that want to defer. If they quit Dec 31, I'll have to eat some shit - last paycheck might be enough net to snatch the deferral amounts. Not planning on firing or having anyone quit, but its worth trying.

yes, my CPA said I'm on the hook. He advised the company to opt out, and allow employees to opt in. Then its on them.

This is not legal advice, but its pretty simple agreement. Tried to be fair to employees. Didn't even add costs of collections, etc.
=============

AGREEMENT REGARDING PAYROLL TAX DEFERRAL

This agreement dated September ___, 2020, between __________________ (“Employer”) and the employee named below (“Employee”), the parties hereby agree as follows regarding the Deferral of Payroll Tax Collection (“Deferral”) under the August 8 Presidential Order:

• Employer has opted out of the Deferral
• Employee hereby elects the Deferral, with the full understanding that the tax will still be owed unless Congress passes a low to forgive repayment of the tax.
• If Congress does nothing, the uncollected taxes will be deducted for the first four months of 2021, resulting in a doubling of Employee’s deductions for that period.
• If Employee is no longer employed by Employer and the forgiveness is not resolved, Employer will be liable for payment of the taxes that were not collected. Therefore, Employee acknowledges and agrees that Employer may deduct the total amount of uncollected tax from the Employee’s last paycheck. If the amount of deferred tax liability is more than the last net paycheck, Employee agrees that they are liable for the full amount deferred, and agrees to pay such amount in full to Employer. If the tax is forgiven by Congress, Employer shall promptly pay any amounts witheld to Employee.


This Agreement is governed by the laws of the State of _________ and jurisdiction for enforcement or collection shall be in the courts of __________ County, ____________.


__________________________ __________________________
Employee Name Employee Signature & Date


__________________________ __________________________
Employer Name Employer Signature

[XXX-er]

Somewhat close to a long retired professional couple in their 80's who each got 1200$ checks with a letter espousing a bunch of republican rhetoric signed by trump

One of them was American who long ago became a Canadian, the other was a Brit who long ago became a Canadian, they have been living/working/retired in Canada for the last 40 yrs

nobody is really sure if its a glitch in the system or wtf BUT they spent the money

[riser4]

Want some naked pics of your mom?

[jono]

That might be the best mod squad mod since skidog's sig