Payroll tax holiday for two months and effects on businesses

[Curmudgeoness]

I do payroll taxes for the company I work for, and I have been thinking about effect of a two month Social Security tax holiday on what I do. I have a feeling that many people are not aware of all the work and record keeping involved in compiling the reports for these taxes (and that includes the geniuses in the Senate who started this). Let me explain this simply.

The form to report earnings and taxes deducted for the federal government are called Form 941. These forms are done quarterly. For anyone who doesn't know what quarterly means (yes, I am again targeting the Senate), it means every three months. Simply, this form has a line for wages, a line for the income tax collected, a line for the tax rate times the wages for Social Security tax, and a line for the tax rate times the wages for Medicare tax. You either have paid deposits throughout the quarter, or you pay the total of the taxes when you send in this form.

So why am I bitching about a TWO month extension??? Well, if that extension does not get extended further than two months, every business with employees will have to separate the wages that they paid in the first two months from the wages paid in that last month. More work, more time paid to the people who do the tax returns, and if the company has software for payroll, more updates installed for the changes.

I just want people to understand that the Republicans who insisted on a limited extension have their heads up their asses. They say that they are pro-business all the time, yet they put an undue burden on them that was totally uncalled for. If they wanted to play this little game, the least they could have done was extend it for one full quarter. I am telling every person I know about this, and I hope that others can use this to inform people they know about how the Republicans screwed the pooch (as well as businesses) with this little game.

Thanks for listening.

[RC]

1. But, but, but...

That $40 I get makes it all worth it.

[Curmudgeoness]

4. You are really right even if you don't think so.

The extra money you get, added to the extra money that all the other people who are working gets, does add up to money that will go into the economy. If you are making an "average" wage, you would be getting about $1000 in additional money in your wallet for a full year---not chump change to me.

But I know what you mean. The argument I was making is not that the tax holiday should not have been extended. My argument is the random time that it was extended for. That two months sucks. Democrats were looking for another full year, and that is what I think is needed. But if you are going to play games with a time frame WHILE CALLING YOURSELF THE PARTY FOR BUSINESS, you screwed the pooch with that two months.

Tell your friends.

[RC]

6. It would be better for everyone if they changed the tax laws to punish outsourcing

instead of rewarding business who do it. Work to get out Living Wage Jobs back into this country, instead of this under the table slight of hand with Social Security.
WPA work would do a much better job of getting money back in circulation.
But we are distracted from what is really going on by the money we 'get back' and ignoring how it is being engineered and the negative effects in the future.

[joeglow3]

2. As a corporate tax accountant, I agree completely

The government does a great job of doing shit like this and pushing the cost of administering to the public. I thank God they repealed that piece of shit 1099 law change.

[Curmudgeoness]

3. Oh god, tell me about it!

I send out about 400 1099's annually, and the corporations that I pay are at least that many. It would have increased the costs by doubling it. And don't even ask about my time!

The only up side of that would have been the benefits to the post office.

[prepperdad]

5. Agreed

Yep, ultimately citizens pay the price of government incompetence. It's horrible.


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