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Post by jimmyjiggles on Sept 2, 2020 15:24:20 GMT -5
(responding to lurkerbelow, who had the last post when I started typing) This is somewhat unprecedented, so I don't know that there is any mechanism to direct your employer to withhold taxes that the government doesn't want right now. My only point is that there is really no harm to any employee, as long as they are aware that they may have to give the money back (with one poyential exception that I do not know how will be handled, which is the employee who is no longer working come 2021 and doesn't have earnings to withhold. For Fed employees, I think you can elect to have an additional amount withheld and sent to whatever bank account you choose. At least I recall this being an option in the past. So you could just direct that the employee % of the fica tax be deposited there until the day they want it back. You could even make some negligible interest! I disagree with the no harm assertion. If you are mid to low wage, money available will be money spent, particularly in these times. That's the whole point - to have more money being spent, not saved. However, if you do not pay it back, now you are carrying a debt that is accruing interest and possibly penalties. Go on long enough, and you are in violation of criminal law. Now the 30 bucks per check you barely noticed at the time is going to cost you a lot more than that in money, time, and possibly liberty. Classic cycle of poverty sort of stuff. I know, its probable that it'll all get waived off eventually, and/or that one should be responsible and pay their taxes on demand; however it is still a potential problem that makes me very wary. |
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Post by nylawyer on Sept 2, 2020 17:08:34 GMT -5
I feel I can confidently state no one will go to jail for this.
At least not just this- maybe it's count 223 of an indictment. You know, defendant is charged with murder, racketeering, terrorism, and also owes FICA $47.
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Post by jagvet on Sept 2, 2020 17:41:25 GMT -5
Add it to overpayment cases. SSA collects what, 10%?
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Post by SPN Lifer on Sept 2, 2020 21:59:19 GMT -5
We are WITHOLDING the payroll tax, correct? That is an optional witholding that we direct with the W-4 form we sign when we are employed. This process is described by statute. We have a right to adjust it as we wish with the employer. So, what happens to my W-4 form? Is my witholding being changed by this executive order? Can I change it back? Why does the government get to adjust my chosen witholdings for FICA etc? I'm a citizen and can pay taxes however I want. I don't think this is accurate. You can adjust withholdings on income tax; your employer is mandated to withhold payroll taxes such as Social Security and Medicare. I don't believe you get any say in this; a certain percentage is withheld each paycheck, unless and until the employee hits the annual cap, at which point the employer stops withholding until the next year. For Fed employees, I think you can elect to have an additional amount withheld and sent to whatever bank account you choose. At least I recall this being an option in the past. So you could just direct that the employee % of the fica tax be deposited there until the day they want it back. You could even make some negligible interest! * * * However, if you do not pay it back, now you are carrying a debt that is accruing interest and possibly penalties. Go on long enough, and you are in violation of criminal law. Now the 30 bucks per check you barely noticed at the time is going to cost you a lot more than that in money, time, and possibly liberty. There is an unfortunate conflation here of withholding for income tax and for payroll taxes, as nylawyer rightly points out. Forms W-4, voluntary excess withholding, and criminal punishment for tax evasion are all features of income tax law. An employee has no discretion whatsoever with respect to payroll taxes, except perhaps to verify the employer's calculations, and complain if something is amiss. An employee has no right to refuse whatever lawful payroll tax withholding decisions the employer makes. If you want to set some of your "extra pay" aside for possible repayment, that is wholly up to you. That is the extent of your involvement in payroll withholding as an employee. |
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Post by stevil on Sept 4, 2020 7:49:34 GMT -5
Just got notified that in OMHA, the deferral of social security withholding tax only applies if your gross social security wages are less than $4,000 in any given pay period. That should exclude ALJs. It starts with the current pay period and will be reflected in your ELS for the next pay date - 9/18/20.
Sure hope Congress acts before folks have to pay this back.
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Post by oddis on Sept 4, 2020 18:42:44 GMT -5
Good Lord, there are a lot of people on here that do not understand how the tax system works.
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Post by lurkerbelow on Sept 5, 2020 8:35:45 GMT -5
Good Lord, there are a lot of people on here that do not understand how the tax system works.  Above center in the picture is my entire legal tax experience. |
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Post by generalsherman on Sept 14, 2020 8:21:57 GMT -5
Per Agency email, they will stop collecting the OASDI tax this pay period, but starting Jan. 1 they will start collecting it again PLUS the previously deferred tax. Obviously this only applies to lowly AA’s such as myself and a few other board members, but that’s going to be a real hit. What a way to run a railroad.
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Post by Loopstok on Sept 14, 2020 20:15:07 GMT -5
Per Agency email, they will stop collecting the OASDI tax this pay period, but starting Jan. 1 they will start collecting it again PLUS the previously deferred tax. Obviously this only applies to lowly AA’s such as myself and a few other board members, but that’s going to be a real hit. What a way to run a railroad. Whoever had to send out that e-mail clearly disliked the policy and intended their explanation to be a warning to employees to save that "extra" money rather than spending it -- four months of bigger paychecks followed by four months of smaller paychecks has almost Biblical implications; save your extra crops for lean times, don't eat 'em now. The e-mail was very, very artfully worded, I thought. |
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