Author Topic: Trumps executive orders  (Read 672 times)

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Offline aquabliss

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Trumps executive orders
« on: August 08, 2020, 11:26:43 PM »
Can anyone find the detail of the executive order stopping the payroll tax on those that make less than $100k?  I presume this is based on gross wages and they’ll have to extrapolate out and estimate your annual pay based on your paycheck after Sept 1st?  Or would they 2019 income tax filing as a base?

If they use the extrapolation method, this means like (say for example) I make $8,500mo gross and my wife doesn’t work we get no benefit? 

Offline aquabliss

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Re: Trumps executive orders
« Reply #1 on: August 09, 2020, 02:16:23 AM »
Welp I think I found the answer: https://www.whitehouse.gov/presidential-actions/memorandum-deferring-payroll-tax-obligations-light-ongoing-covid-19-disaster/
——-
(a)  The deferral shall be made available with respect to any employee the amount of whose wages or compensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount with respect to other pay periods.
——-

They’re also calling this a “deferral” so maybe you have to pay it back when you file your 2020 return?  What a mess.

Offline Compressed-Village

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Re: Trumps executive orders
« Reply #2 on: August 09, 2020, 09:10:03 AM »
Side stepping congress and senate, so bad habits are hard to break.


Offline irvinehomeowner

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Re: Trumps executive orders
« Reply #3 on: August 09, 2020, 11:00:12 AM »
You get a stimulus and you get a stimulus and you get a stimulus!
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Offline SoclosetoIrvine

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Re: Trumps executive orders
« Reply #4 on: August 09, 2020, 11:34:21 AM »
Welp I think I found the answer: https://www.whitehouse.gov/presidential-actions/memorandum-deferring-payroll-tax-obligations-light-ongoing-covid-19-disaster/
——-
(a)  The deferral shall be made available with respect to any employee the amount of whose wages or compensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount with respect to other pay periods.
——-

They’re also calling this a “deferral” so maybe you have to pay it back when you file your 2020 return?  What a mess.

ya I don't really get it.. so if you qualify, you can essentially go exempt the rest of the year?  but you may have to pay it all back for taxes next year? seems pointless?  wonder if bonus counts against that pay period or just salary?

Offline Kenkoko

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Re: Trumps executive orders
« Reply #5 on: August 09, 2020, 12:27:07 PM »
It's just a deferment. The claw-back mechanism is still TBD.

What's interesting is the 7.65% "tax cut" is actually a deferment on the employer side. Not the employee.

For those who don't know who payroll tax works, the federal government imposes a 15.3% levy on wages known as the payroll tax. It's evenly divided between employers and employees at 7.65%, and most of it goes to fund Social Security. It also helps to finance Medicare.

It'll be entirely up to your employer whether to turn the tax deferment over to you.

They have a very good reason not to - the fear of footing the bill when it's due. Because if they don't withhold, they're ultimately liable for the employees' share of the tax. That's a pretty big risk for employers to take.

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Offline daedalus

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Re: Trumps executive orders
« Reply #6 on: August 09, 2020, 12:52:29 PM »
So basically the government is "forcing" companies to take a loan?  But employees of prudent companies will not see any benefit to their take-home pay?

Offline Kenkoko

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Re: Trumps executive orders
« Reply #7 on: August 09, 2020, 01:05:36 PM »
So basically the government is "forcing" companies to take a loan?  But employees of prudent companies will not see any benefit to their take-home pay?

Yes. And my guess is that many workers likely won't see extra money in their paycheck.

Presidential executive orders have limitations.

President Trump has the authority to order the IRS to stop collecting those taxes from people's paychecks, but the president can't wipe away tax bills on his own.

Offline Compressed-Village

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Re: Trumps executive orders
« Reply #8 on: August 10, 2020, 12:58:18 PM »
You get a stimulus and you get a stimulus and you get a stimulus!

Stimulus? Far from it. It merely keeping the lights on.

Stimulating is when you see growth. Massive fiscal and rate cut to zero and the economy still lock down in many places is a depression. It getting weaker and weaker. Yes my view is less optimistic than your.😊

Offline irvinehomeowner

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Re: Trumps executive orders
« Reply #9 on: August 10, 2020, 01:25:06 PM »
You get a stimulus and you get a stimulus and you get a stimulus!

Stimulus? Far from it. It merely keeping the lights on.

Stimulating is when you see growth. Massive fiscal and rate cut to zero and the economy still lock down in many places is a depression. It getting weaker and weaker. Yes my view is less optimistic than your.😊

You keep the lights on and you keep the lights on and you keep the lights on.

I don't even get any stimulus... where is my share?
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Offline qwerty

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Re: Trumps executive orders
« Reply #10 on: August 10, 2020, 01:34:01 PM »
You get a stimulus and you get a stimulus and you get a stimulus!

Stimulus? Far from it. It merely keeping the lights on.

Stimulating is when you see growth. Massive fiscal and rate cut to zero and the economy still lock down in many places is a depression. It getting weaker and weaker. Yes my view is less optimistic than your.😊

You keep the lights on and you keep the lights on and you keep the lights on.

I don't even get any stimulus... where is my share?

1%’ers like you IHO you get to pay your fair share. Must be nice:-)

Offline irvinehomeowner

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Re: Trumps executive orders
« Reply #11 on: August 10, 2020, 09:48:04 PM »
Hah... I don't think anyone on this forum gets any stimulus... you have to make enough to live in Irvine, Tustin, etc.
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Offline Irvinecommuter

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Re: Trumps executive orders
« Reply #12 on: August 11, 2020, 09:37:16 AM »
Payroll tax cut is like the panacea cure of conservatives...it sounds great for conservative but is disastrous for the future and does next to nothing now.

Conservatives and tax cutters still live in the 1980s where "jobs creators" are the only ones at the table...except those "creators" don't want to create jobs...they wants to reduce them. 

Go watch Kudlow on the Sunday shows...he still making the arguments that the working class are basically lazy and need to be "motivated" to work and that health should have no impact on whether the workers go back to work or not.  BACK TO MINES EVERYONE!

Oh...all this "small business" talk is utterly ridiculous.   Small businesses don't want cheap labor..they want good and steady labor.  Big business want cheap labor.

Offline Irvinecommuter

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Re: Trumps executive orders
« Reply #13 on: August 11, 2020, 09:46:40 AM »
So basically the government is "forcing" companies to take a loan?  But employees of prudent companies will not see any benefit to their take-home pay?

Yes. And my guess is that many workers likely won't see extra money in their paycheck.

Presidential executive orders have limitations.

President Trump has the authority to order the IRS to stop collecting those taxes from people's paychecks, but the president can't wipe away tax bills on his own.

It's all smoke and mirrors right now...Trump is doing his usual TV show hosting and pretending to do things so he can set up an enemy:  The Dems in Congress.

Dems already passed the bill in the House..hold up is in the Senate....and those tea partiers.

 

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