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This post is in no way meant to be political. This is strictly to inform those of you that are still in about the upcoming Federal tax withholding. It is mandatory for individuals whose monthly basic pay is less than $8,666.66. (Skip to bottom for Barney Style)
ESSENTIALLY WHAT THIS MEANS:
This will start...
-The order was signed in August and will begin the first payment of September (14-15), running through the end of the year (8 paychecks)
This costs...
-The amount being differed is equal to the 6.2% FICA tax usually withheld (you will see this on your LES as "FICA-SOCIAL SECURITY taxes"
-This same amount will be taken from the first 8 paycheck of 2021 (January-April) IT WILL COME DIRECTLY FROM YOUR CHECKS.
This will most likely affect...
-All Enlisted Personnel
-Officers O-1 through O-4
-O-5 with less than 16 years of service
-Warrant Officers W-1 through W-4
Barney Style...
-Essentially the taxes that are normally taken out are going to be left in your paycheck until the beginning of next year, then they will be automatically taken out on top of the tax you normally pay.
Barney Style-er...
-Your check will be 6.2% bigger September-December 2020 and 12.4% lower January-April 2021
If you want help on how to prepare for this and take steps to make sure your budget remains unaffected by the change please contact me via message or comment and I will reach out. I want to be a resource for everyone so please don't hesitate!
ESSENTIALLY WHAT THIS MEANS:
This will start...
-The order was signed in August and will begin the first payment of September (14-15), running through the end of the year (8 paychecks)
This costs...
-The amount being differed is equal to the 6.2% FICA tax usually withheld (you will see this on your LES as "FICA-SOCIAL SECURITY taxes"
-This same amount will be taken from the first 8 paycheck of 2021 (January-April) IT WILL COME DIRECTLY FROM YOUR CHECKS.
This will most likely affect...
-All Enlisted Personnel
-Officers O-1 through O-4
-O-5 with less than 16 years of service
-Warrant Officers W-1 through W-4
Barney Style...
-Essentially the taxes that are normally taken out are going to be left in your paycheck until the beginning of next year, then they will be automatically taken out on top of the tax you normally pay.
Barney Style-er...
-Your check will be 6.2% bigger September-December 2020 and 12.4% lower January-April 2021
If you want help on how to prepare for this and take steps to make sure your budget remains unaffected by the change please contact me via message or comment and I will reach out. I want to be a resource for everyone so please don't hesitate!
trump-payroll-tax-holiday
Posted from washingtonpost.com
Finance
Personal Finance
Budget
Military Pay
Pay Cuts
Posted 5 y ago
Responses: 7
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My barney styler-er math says your paycheck will be 6.2% lower than it is today come next year, but lower regardless. I agree that there needs to be an opt out option
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Cpl (Join to see)
CSM Chuck Stafford The 6.2% tax will not be taken out Sept-Dec which means your checks will be larger. In Jan-Apr there will be 6.2% repayment on top of the 6.2% that was already taken out --- As far as I know given the information that as been released.
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Cpl (Join to see)
CSM Chuck Stafford Sometimes when I get caught up in my work my sense of humor becomes a little dull, no hard feelings lol
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This effects all federal employees as well regardless of agency. My question is will I be responsible to pay all this back when I go to file my taxes in January? I am the tax man but I can't get answer from my agency.
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Cpl (Join to see)
PFC (Join to see)
"An Affected Taxpayer must withhold and pay the total Applicable Taxes that the
Affected Taxpayer deferred under this notice ratably from wages and compensation
paid between January 1, 2021 and April 30, 2021 or interest, penalties, and additions to
tax will begin to accrue on May 1, 2021, with respect to any unpaid Applicable Taxes. If
necessary, the Affected Taxpayer may make arrangements to otherwise collect the total
Applicable Taxes from the employee. "
This is straight from the IRS. Closest thing I could find to an explanation of payments. I hope it helps at least a little bit.
"An Affected Taxpayer must withhold and pay the total Applicable Taxes that the
Affected Taxpayer deferred under this notice ratably from wages and compensation
paid between January 1, 2021 and April 30, 2021 or interest, penalties, and additions to
tax will begin to accrue on May 1, 2021, with respect to any unpaid Applicable Taxes. If
necessary, the Affected Taxpayer may make arrangements to otherwise collect the total
Applicable Taxes from the employee. "
This is straight from the IRS. Closest thing I could find to an explanation of payments. I hope it helps at least a little bit.
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PFC (Join to see)
Cpl (Join to see) strange you can refer me to this but my managers an department manager couldn't even give me an answer.
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Cpl (Join to see)
I pride myself on it brother, would love to continue to be of service!
For reference, here's the link.
https://www.irs.gov/pub/irs-drop/n-20-65.pdf
For reference, here's the link.
https://www.irs.gov/pub/irs-drop/n-20-65.pdf
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I'm not sure how this is supposed to help people. I think this will surprise most unless one pays close attention and has a place to put short-term money to make interest during the next four months.
Federal employees are the one group of people who are still getting paid throughout these strange times and have more job security than almost any other sector of the economy.
I worry about junior service members not understanding the tax implications and struggle to make ends meet come January 2021 when this money all starts coming out of our paychecks again.
I would opt-out if able.
Federal employees are the one group of people who are still getting paid throughout these strange times and have more job security than almost any other sector of the economy.
I worry about junior service members not understanding the tax implications and struggle to make ends meet come January 2021 when this money all starts coming out of our paychecks again.
I would opt-out if able.
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Cpl (Join to see)
I too worry about junior service members, and young people as a whole. A lot of them aren't getting well educated in regards to personal finance.
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