Looks like some people are going to be getting unexpected tax bills due NOW!

[hal2kilo]

Trump wanted a quick tax break. His appointees are now stuck with big bills. - POLITICO

They've been ordered to immediately repay months of payroll taxes that had been deferred under a bid by Trump to boost the economy ahead of last year’s elections — levies he had assured them would later be forgiven.

This is what caused it.

Five things to know about Trump's payroll tax deferral (msn.com)

 

[feralkid]

Herpes Trump is the gift grift that keeps on giving taking.

 

[pauldun170]

lol

In August, he issued an executive order allowing employers to put off paying their workers’ share of the 12.4 percent Social Security tax for the rest of the year. The idea was to boost consumer spending by putting more money in the pockets of millions.
But the initiative was widely rejected by private sector employers, in part because they feared workers would be unprepared to pay the money back.
It was mandatory, though, for federal employees making less than $4,000 per biweekly paycheck, and the government began implementing it in September.

For current federal employees, the taxes are now being incrementally withheld from their paychecks.
Often overlooked, though, were people who left the government because they quit or retired — but, perhaps more likely, because they were political appointees who had to leave with Trump’s defeat.

It's not like we are talking about non-educated blue collar workers. We're talking about professionals. They knew what that they were supposed to plan accordingly.

This thing is symbolic of how republicans run government.

 

[Moonbeam]

Everything Trump touches.....................

 

[Pohemi]

This thing is symbolic of how republicans run government.

"We have nothing to worry about when the bill comes due. We won't be around to be subject to it anyway, and if we are...we'll find a way out of it when it comes."

 

[Greenman]

It was a tax deferral. Deferral is the operative term. Anyone that did it should have looked up "deferral" before doing it.

 

[Zorba]

Thankfully almost not private companies fall for this. Feel bad for all the civil servants that were used as pawns for the last 4 years, though.

 

[Thump553]

I have absolutely no sympathy for anyone that went for this.

These certainly weren't unexpected tax bills-Trump did these by Executive Order, which only gives him power to alter the administration of taxes. Changing the actual tax law requires Congress. It was very widely publicized at the time of Trump's EO that all it did was lift the requirement for employees to pay their estimated taxes via payroll deduction-the taxes would still be due and payable in full by the tax return filing deadline.

I think the Trump Administration was thinking this action would be so wildly popular that Congress would have to change the tax law. Didn't happen.

The tax relief bill for billionaires rammed through by the GOP earlier in Trump's administration worked in a similar manner. Corporations and the highest income individuals were given permanent tax cuts. The tax cut for the rest of us will end in a few years. This was done to get popular support for the plan-and the sunset provision was necessary to make it look like it wasn't wrecking the budget and inflating the deficit as much as it actually was.

Gaming the system is how grifters "govern."

 

[IronWing]

It was a tax deferral. Deferral is the operative term. Anyone that did it should have looked up "deferral" before doing it.

Federal employees weren't given an option. The Trump admin mandated it.

 

[pcgeek11]

And if they were the least bit intellegent they would have planned for this Deferral. I was widely publicized when it happened.

 

[s0me0nesmind1]

Federal employees weren't given an option. The Trump admin mandated it.

Math is hard, yo.

 

[NWRMidnight]

It was a tax deferral. Deferral is the operative term. Anyone that did it should have looked up "deferral" before doing it.

It was a big con on the lower and middle class, special those who are government employees who had no recourse to stop it. By design, it was to stimulate the economy by placing the burdon squarely on the lower and middle classes backs who are already feeling the impact of the pandemic. Resulting in a lot of those lower and middle unable to pay the tax bill because of the financial strain of the pandemic. Which I am sure was also by design as it knocks them down and keeps them in debt longer, with some losing their houses and other assets that the rich will swoop in and purchase at cents on the dollar.

In the end, there was zero benefit and a boat load of hardship to those working people who where forced to take the deferral, and all the benefit and gains was all for the business owners and the rich.

 

[NWRMidnight]

I have absolutely no sympathy for anyone that went for this.

These certainly weren't unexpected tax bills-Trump did these by Executive Order, which only gives him power to alter the administration of taxes. Changing the actual tax law requires Congress. It was very widely publicized at the time of Trump's EO that all it did was lift the requirement for employees to pay their estimated taxes via payroll deduction-the taxes would still be due and payable in full by the tax return filing deadline.

I think the Trump Administration was thinking this action would be so wildly popular that Congress would have to change the tax law. Didn't happen.

The tax relief bill for billionaires rammed through by the GOP earlier in Trump's administration worked in a similar manner. Corporations and the highest income individuals were given permanent tax cuts. The tax cut for the rest of us will end in a few years. This was done to get popular support for the plan-and the sunset provision was necessary to make it look like it wasn't wrecking the budget and inflating the deficit as much as it actually was.

Gaming the system is how grifters "govern."

You are missing the important fact that not a single employee had a say in the matter. Government employees had zero way to stop it, and neither did employees of the private sector that worked for companies who chose to enact the deferral. At the end of the day, the working class had zero say in the decision. Yeti they are the ones paying the price.

 

[NWRMidnight]

And if they were the least bit intellegent they would have planned for this Deferral. I was widely publicized when it happened.

Most if the effected have zero clue on how payroll taxes work, yet you believe they should have planned for it.

Why was the burden of stimulating the economy placed on the lower and middle class thru their paychecks in the first place?

 

[ondma]

Well, it is not really "unexpected". It was clear from the beginning the deferred payroll tax would have to be repaid.

 

[Thump553]

Federal employees weren't given an option. The Trump admin mandated it.

They did have an option-they could have and should have made estimated tax payments. That's what we self-employed and contract workers do.

Sorry if I sound harsh it's just that sticking your head in the sand and then claiming surprise and victimhood doesn't fly with me-regardless of political philosophy.

 

[cytg111]

It was a tax deferral. Deferral is the operative term. Anyone that did it should have looked up "deferral" before doing it.

It almost like you two canaries don’t understand that this is obviously Bidens fault.
This message will go straight over your head too. You simply lack the reflexes to catch it.

 

[NWRMidnight]

They did have an option-they could have and should have made estimated tax payments. That's what we self-employed and contract workers do.

Sorry if I sound harsh it's just that sticking your head in the sand and then claiming surprise and victimhood doesn't fly with me-regardless of political philosophy.

It doesn't work that way when you are an employee of a company. Normally self-employed or contract work tax payments are tied to your permit or business license. You are required to pay quarterly taxes, which are just estimated tax payments in that situation. For payroll taxes, they are required to go thru the business where the employee is employed. Basically two different systems in paying those taxes that are not interchangeable.

Also, the employer is/was supposed to be responsible for collecting the deferred payroll taxes between January and April 2021. So you can quit trying to blame the employees, when their employer dropped the ball.

 

[IronWing]

They did have an option-they could have and should have made estimated tax payments. That's what we self-employed and contract workers do.

Sorry if I sound harsh it's just that sticking your head in the sand and then claiming surprise and victimhood doesn't fly with me-regardless of political philosophy.

This was FICA, not income taxes. I agree with the planning ahead part but remember that Trump was bribing voters with their own money and suggesting that if they re-elected him that the deferred taxes would be forgiven (ignoring the damage to the SS Fund of course).

 

[Greenman]

It doesn't work that way when you are an employee of a company. Normally self-employed or contract work tax payments are tied to your permit or business license. You are required to pay quarterly taxes, which are just estimated tax payments in that situation. For payroll taxes, they are required to go thru the business where the employee is employed. Basically two different systems in paying those taxes that are not interchangeable.

Also, the employer is/was supposed to be responsible for collecting the deferred payroll taxes between January and April 2021. So you can quit trying to blame the employees, when their employer dropped the ball.

Just looked further into this. Federal employees were give the tax deferral, and then it had to be repaid over the first few months of 2021. We're only talking about the SS deductions, so it's not a lot of money, and would be deducted from each check.

 

[rstrohkirch]

In the end, there was zero benefit and a boat load of hardship to those working people who where forced to take the deferral, and all the benefit and gains was all for the business owners and the rich.

Can you explain to me how you see this as a benefit or gain to business owners? The burden of the payments falls on the business owner if the employee does not pay. The average turnover rate nationwide in a normal year is 10-15% and last year it was immensely higher. Employers are statistically going to be stuck with payments that previous employees didn't cover. So what was the gain in your eyes for most business owners?

I'll agree with you that there was zero benefit for most people regardless of the side but come on with the "boat load of hardship". They had to separate out their SS taxes and save it. Which is drastically easier then managing your finances and spending habits for every day life. The amount is not that much and you're really exaggerating here.

You are missing the important fact that not a single employee had a say in the matter. Government employees had zero way to stop it, and neither did employees of the private sector that worked for companies who chose to enact the deferral. At the end of the day, the working class had zero say in the decision. Yeti they are the ones paying the price.

That's just false information in regards to the private sector. There are companies who offered this as an option to their employees and there are companies who had discussions about whether to implement this with their employees.

 

[NWRMidnight]

Just looked further into this. Federal employees were give the tax deferral, and then it had to be repaid over the first few months of 2021. We're only talking about the SS deductions, so it's not a lot of money, and would be deducted from each check.

it's not a lot of money? first of all, it's not just SS, it's also Medicare.. 12.5% which is half paid by the employer (6.25% paid by the employee), and Medicare of 2.9% all paid by the employee. That is 9.15% per paycheck. Now the cap is an income of $4000 every two weeks. I make half that, and if my employer took the payroll deferral, I would be on the hook for around $1800. That's a lot of money, specially when many of these people are already struggling due to the added financial impact of the pandemic.

To you it may not be a lot of money, but 75% of people live paycheck to paycheck. And that was before the pandemic. So anything they have to payback is a lot of money.

 

[Jaskalas]

It's not like we are talking about non-educated blue collar workers. We're talking about professionals. They knew what that they were supposed to plan accordingly.

This thing is on the backs of workers?

I don't think every fed employee is so highly paid and or "planning" as you would claim.

 

[NWRMidnight]

Can you explain to me how you see this as a benefit or gain to business owners? The burden of the payments falls on the business owner if the employee does not pay. The average turnover rate nationwide in a normal year is 10-15% and last year it was immensely higher. Employers are statistically going to be stuck with payments that previous employees didn't cover. So what was the gain in your eyes for most business owners?

I'll agree with you that there was zero benefit for most people regardless of the side but come on with the "boat load of hardship". They had to separate out their SS taxes and save it. Which is drastically easier then managing your finances and spending habits for every day life. The amount is not that much and you're really exaggerating here.



That's just false information in regards to the private sector. There are companies who offered this as an option to their employees and there are companies who had discussions about whether to implement this with their employees.

How is hte deferral beneficial to the employers? Every dollar not going out is reinvested into their company which they in turn make more money on, turning that dollar into two, three dollars). I was also talking about the deferral itself being beneficial to the employers, meaning having the ability to put off paying those taxes until April of 2021, which has been extend to the end of This year. Those companies who didn't/don't have a plan in place to collect the employee's portion, that's not due to the deferral, that's due to poor planning and not having a system in place to collect and pay the taxes.

And no, it's not false information about the private sector. Just because companies CHOSE to involve their employees, MOST did not, they where never required to. You are trying to take the handful of decent employers who had the ability to implement such programs and the consideration to involve the employees, when the majority did not. IF what you say is true, we wouldn't be here talking about a lot of people on the hook for big payroll tax bills because they would have already been paid back.. But what I think you are doing is confusing the FICA estimated tax payments that emplyees can setup, which is part of the federal tax code, which allows people to pay more than what normally is taken out of their check for those who tend to have to pay a lot at the end of the year, which has nothing to do with payroll taxes.

 

[ondma]

First, I dont think the President should be able to do this by executive order. That said, the plan was well publicized and people should have been well aware that you would have to repay eventually. You wouldn't even have to file estimated taxes. Just put the extra money aside for when the bill comes due. I know that is hard to do if you are living on the edge, but it still was obvious what one had to do.