Prepare for your taxes now!

Discussion in 'Finance' started by Rush_is_Right, Aug 9, 2020.

  1. Rush_is_Right

    Rush_is_Right Well-Known Member

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    President Trump signed 4 executive orders yesterday, one of which gives those making less than $100K per year a tax holiday through the end of the year. That doesn't mean you won't have to pay that tax when you file next year. So prepare now by adjusting your (W9?).
    Remember the last tax cut, people were complaining they didn't get as big a refund as they expected or they had to pay. That was your fault!
     
  2. Spim

    Spim Well-Known Member Past Donor

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    I need to address this at my work, I do the payroll, but since it kicks in 9/1 i figured I had some time to sort out the mess.
     
  3. Chrizton

    Chrizton Well-Known Member

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    I would suggest that you withhold the money regardless. The employer could be on the hook for it if they distribute it to employees. You are liable to pay it over to Uncle Sam. Give it to an employee who quits December 15, then your company is paying IRS money that your now former employee pocketed.
     
  4. Spim

    Spim Well-Known Member Past Donor

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    I was thinking that. But then what, still file a 941 with a full deposit? Then I'm overpaying on payroll taxes, never done that before not sure how its handled.
    .... I can hold the cash and wait for more guidance since the first quarterly would be due Oct 15, there is time.

    It's just messed up for it not to be clear yet what we should do and I'm assuming there are millions of others scratching their heads about their payroll.
     
    Last edited: Aug 19, 2020
    Collateral Damage likes this.
  5. Collateral Damage

    Collateral Damage Well-Known Member

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    If it becomes law, you do as the law requires. If you withhold a penny from the employee under any tax, you submit it in a timely manner to the US Treasury and report it as submitted on the quarterly 941. An employer cannot be held liable for taxes withheld and paid in a timely manner. Worse case scenario, the taxes are refunded to the employer, and the employee.

    If you do not change the withholding in accordance with a valid moratorium, the employee can go after you for unlawful deduction of wages. While a PITA dealing with less tax educated employees, you'll have to weigh the ire of the taxing authority, and a ticked off employee....

    Several articles on the subject muddy the water, making it sound like the employer would be responsible for the employees portion. That would only be valid if the employer failed to withhold according to law existing at the time of the employment. If the moratorium is valid, then the employer can only held responsible for the employer's portion, and the employee would be held responsible via tax filings.
     
  6. Chrizton

    Chrizton Well-Known Member

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    The law says that they are due period. Only thing Trump is changing is the date the deposits have to be made in the appropriate government accounts.
     
  7. Chrizton

    Chrizton Well-Known Member

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    We use a payroll company. I can ask them when they call next week but my direction is going to be the money gets withheld as normal. When they remit it is up to them.
     
  8. Rush_is_Right

    Rush_is_Right Well-Known Member

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    It has come to my attention that this is actually a suspension of the social security taxes. I think that changes things but I am not sure.
     
  9. Distraff

    Distraff Well-Known Member

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    When does the President has the authority to cancel a tax?
     
  10. Rush_is_Right

    Rush_is_Right Well-Known Member

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    He doesn't, he suspended it.
     
  11. Distraff

    Distraff Well-Known Member

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    Where does the constitution the right to suspend taxes enacted by congress without a vote by congress?
     
  12. Rush_is_Right

    Rush_is_Right Well-Known Member

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    A quick search brought up thousands of articles about it. You should try it!
     
  13. Distraff

    Distraff Well-Known Member

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    The internet doesn't give the president his powers. The constitution does. The power over taxation and spending is a power given to Congress, not the president. That is what you find if you actually read the constitution.
     
  14. Rush_is_Right

    Rush_is_Right Well-Known Member

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    So you didn't even try?
     
  15. Distraff

    Distraff Well-Known Member

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    Yes. I couldn't find anything. How about you? It kind of feels like you never actually did any research into whether this is even legal.
     
  16. Chrizton

    Chrizton Well-Known Member

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    Just a follow up to do with as you wish. Paychex told me everything will be done as normal on their end as if this wierdness didn't even exist unless we have a CPA direct them otherwise as to our payroll. Withholdings will be made as normal, deposits of those withholdings will be made as normal.
     

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