Have you wondered how that payroll tax deferment would work? Did anyone besides me look at a September pay stub to see if anything changed. It didn't on mine and probobly not on anyone else's either. Here's what a payroll manager thinks, It showed up on facebook today and she states the problem much better than I ever could.
Ok I’m a payroll manager. Today I just read about this new payroll tax deferment that trump ordered on August 8th. Please note nobody knew what to do with the thing- there were no directives on how to actually do it - just boom - make it happen starting on Sept 1, 2020.
On August 28, 2020, the IRS finally got around to issuing a notice that actually told what and how to implement this thing. Please note that was 4 whole days before it was supposed to start, and 2 of those days were a weekend. Wow!
There is no payroll database company that can whip up this kind of very complex order in essentially 2 business days. Every single company in the country is in a free fall state just trying to understand the thing. Their legal teams are still trying to evaluate it because they need to give legal advice to their clients - should it be implemented or not. Nobody knows. It is now Sep 3, three days after it was supposed to be implemented.
The terms of this supposed payroll tax deferment are a real laugh a minute. Take a gander of just some of the details:
1. The employee has to pay it back in full from Jan- April 2021. If they don’t pay it back, there will be heavy interest and penalties. If they still don’t pay it back, the employers have to pay it. What a deal!!! Sign me up!!
Wait there’s more!
2. It must be recalculated every 2 weeks. This doesn’t seem too bad, but when you are dealing with hundreds or thousands of employees and your database company doesn’t have it working, that is a huge problem.
Wait there’s more!
3. If the employee opts in for this and qualifies (must make less than $4,000 every 2 weeks), but then gets a bonus or extra wages, then they don’t get the deferment. What? Yes you never know if you got the deferment or not. Always a big surprise every payday. What could be better than that?
But wait, there’s more!
4. It is unclear if companies are required to offer this thing or not. It is also unclear how to offer an option. And it is unclear how the employee is supposed to pay back the deferment. This leads to needing legal advice for a really murky and shoddily put together trump order. Wow! Isn’t that fantastic!!
But you know there is even more too numerous to mention. This thing just keeps on giving. Hey thanks trump. Thanks for nothing I mean.
What a way to get our economy re-started!! Cripple payroll offices everywhere. I’m so impressed - NOT.
Oh the final kickers 1 and 2:
1. This doesn’t help the unemployed not one little bit. It is just a stunt meant to amaze everyone. Wow! I am surely amazed all right.
2. The real reason to pull this fast one is to get us used to not paying payroll tax, so that when he lowers the boom to defund Social Security, we will supposedly think it’s a good thing.
Think about it. Do YOU want Social Security to go away? Do you really?
This gem is a real piece of work put forth by a criminal mind. So sayeth the payroll manager.
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