President has the payroll plan this year for companies, then why there's still layoffs? doesn't make any sense any more
can anyone explain
9 replies (most recent on top)
Cisco has to pay for a thousand eyes somehow. Why not do it on the back of its current employees/contractors?
Social/Cov1d PR doesn't matter on the spreadsheets and to shareholders.
sorry, my bad. i looked into the payroll protection plan, and it was for small companies.
I doubt Cisco will participate since they are laying off so many employees, the employees won't have to repay the non-withheld payroll Social Security tax since they will no longer be employed past December 2020.
Cisco has way more employees than the ones being laid off, so the number of people who aren't employees after Dec 31st and can't pay back the taxes is negligible compared to the rest.
Additionally, so far all the reporting I've seen is that employers can withhold the unpaid taxes from employees final paychecks. But this would only really affect those that take the Workforce Transition Option (WTO) voluntary lay-off who's last day would be Nov 23rd or those with the involuntary WTO lay-off on Jan 4.
But realistically, the payroll tax deferral plan is for those who make less than $104K. I'd bet most people are making $80K or better and those that are making more than $104K are the ones targeted by the job reductions and won't have payroll taxes deferred anyway.
OP might be referring to optional plan to let companies defer from witholding the 6.2% employee portion of the SS tax withholding, between Sept 1 2020 and Dec 30 2020. Employers have the option to participate. I doubt Cisco will participate since they are laying off so many employees, the employees won't have to repay the non-withheld payroll Social Security tax since they will no longer be employed past December 2020.
Employers can defer the withholding, deposit, and payment of the employee portion of the Old Age, Survivors, and Disability Insurance segment of FICA taxes, i.e., the 6.2% tax on employee wages The deferral applies to taxes on wages paid from September 1, 2020, through December 31, 2020. The payroll taxes are deferred, not forgiven.
Greed is good.
Silicon Valley is aligning and timing layoffs to affect elections outcome. this is not hard
#1 Cisco didn't take any money.
#2 October has been the "nice to keep you to" month because those that did cannot layoff until October. Look at the airlines for one big sector.
#3 The additional unemployment money is making it easier for Cisco to lessen the severance if they even offer it. They can use the extra $300/wk unemployment as the reason. This way they don't have to deal with severance, insurance, placement tools, Randstadt/LHH, or anything else. Just give you 30-days and wipe their hands clean. They can get rid of more people this way without the financial hits.
cisco did not take govt money, why would layoffs start in oct?
read the other posts on this
all ends sept 30
layoffs start in october