Unless the government forgives the deferred taxes, how is the deferral of payroll taxes supposed to help? As things currently stand, we're supposed to pay back the four months of deferred taxes from January to April 2021.
Nice info thanks
Unfortunately the tax deferral is not going to be helpful if it stays as described in the executive order.
Also I am not sure about how the underfunding of FICA taxes are going to help the country. As it stands right now social security is less than a decade away from being insolvent or having a unfunded liability of 79% or less. Luckily I have been aware of the issue with social security so I do not include it in my retirement plan. However, I know that is not the case for most workers.
Unfortunately the tax deferral is not going to be helpful if it stays as described in the executive order.
Also I am not sure about how the underfunding of FICA taxes are going to help the country. As it stands right now social security is less than a decade away from being insolvent or having a unfunded liability of 79% or less. Luckily I have been aware of the issue with social security so I do not include it in my retirement plan. However, I know that is not the case for most workers.
More than being unhelpful, this could be harmful to a lot of people. I've seen some employers put out notice and guidance that this is coming, but without knowing how this is supposed to be paid back starting in January, how can people responsibly use the "extra" funds? I feel like a lot of people could end up spending this money and end up paying for it in January.
More than being unhelpful, this could be harmful to a lot of people. I've seen some employers put out notice and guidance that this is coming, but without knowing how this is supposed to be paid back starting in January, how can people responsibly use the "extra" funds? I feel like a lot of people could end up spending this money and end up paying for it in January.
Fortunately some employers are looking out for their employees by choosing not to opt-in. That is what the company I worked for decided to do.
Though my payroll taxes will be deferred through the end of the year, I'm fortunate to be in a position where I don't need to spend that additional money in my paycheck. For now, I'll plan to bank that money in an interest-earning account. But for people who may need to spend that money, what should they be doing to avoid problems if that money needs to be paid back starting in January?
Thankful my employer opted to NOT implement this deferral…….
