The payroll tax cut deferment went into effect today which defaults the next four months of the 7.65% tax used to fund General Federal Income, Social Security and Medicare until 2021.
Does anyone know if T allows employees to opt out of this scheme?
I have called HR three times today and still have no clear answer.
I have no issue with having this tax withheld as normal rather than getting a surprise "gotcha" bill for deferred taxes owed from the IRS next year.
It's the Social Security tax that is being deferred. Both houses of Congress will need to pass a bill to NOT collect it at some time.
If you change your W4 withholding to hold out more, it may be enough to offset the Social Security tax.
Worse is that all these deferrals will accumulate and come Jan they will all be taken back... Which makes absolutely no sense. But of course it doesn't this is the Trump train..
The (faulty) logic is that between now and the doubling up of your Q1 tax payments to catch up that Congress would pass a law cancelling the deferred tax collection.
No official announcement, tells me that it hasn't taken effect yet.
Worse is that all these deferrals will accumulate and come Jan they will all be taken back... Which makes absolutely no sense. But of course it doesn't this is the Trump train..
Go into your w4, and assign additional taxes to be taken out. This will eliminate any surprises at the end of the year.
With the amount of capital from the fed poured into just both Apple and Tesla in the last few months, I would say the Treasury doesn't care about you enough to want it back. Unless the reality is they just HATE you.