Best Guess

[JG EA]

on 4.2% vs. 6.2%?

I'm trying to figure out how to change a 01/01 ACH payroll. If I figure 6.2 we can always give the client an extra check for the diffierence.if they go for 4.2 and change the ACH only 2 times.. However if I figure it on 4.2 how do we get money out of the employee?

[JohnH]

I'd assume the rate reverts back to 6.2 on 1/1/12 because that's the current law. If they extend the cut, then the employee will be due a refund. That's a decision you won't have to explain to anyone later. I think it's unwise to make future withholding decisions based on what these Washington whiz kids may or may not do.

[BOB W]

on 4.2% vs. 6.2%?

I'm trying to figure out how to change a 01/01 ACH payroll. If I figure 6.2 we can always give the client an extra check for the diffierence.if they go for 4.2 and change the ACH only 2 times.. However if I figure it on 4.2 how do we get money out of the employee?

You are just going to have to wait until you are ready to issue the first 2012 paycheck. At that point if nothing is past you are required to use the 6.2 rate. The 4.2 rate would have expired.

[ChEAr$]

Moreover, for my clients, we will use the 6.2 for first payroll IF no changes occur. Then, in case the 4.2, or even a 3.2 (!) is retroactive, the excess for each employee will simply be transferred from FICA to federal withholding. Employee doesn't lose nor will he miss it for one week only.

[JohnH]

Don't you just love these geniuses in Congress? They extend the payroll tax cut a FULL 2 MONTHS just so they can do some more politicking in February. Much better to grab a few headlines than to actually accomplish anything of lasting signifiance.

Keep stirring the pot up in Washington, guys and gals. Eventually the voters are going to figure out we don't need term limits if we will just do the right thing at the polls - vote against the incumbent, not matter what jersey they wear. (somebody take me to task for mixing politics and taxes on this forum if you wish. But I'm becoming an equal-opportunity partisan - both sides of the aisle are filled with empty suits )

I'm sick of the whole bunch, and not just because of this latest bit of absurdity. At the rate they're going, it wouldn't surprise me if we eventually get to the point of having to check the rate weekly.

[FEDUKE404]

The usual political way

Don't you just love these geniuses in Congress? They extend the payroll tax cut a FULL 2 MONTHS just so they can do some more politicking in February. Much better to grab a few headlines than to actually accomplish anything of lasting signifiance.

Keep stirring the pot up in Washington, guys and gals. Eventually the voters are going to figure out we don't need term limits if we will just do the right thing at the polls - vote against the incumbent, not matter what jersey they wear. (somebody take me to task for mixing politics and taxes on this forum if you wish. But I'm becoming an equal-opportunity partisan - both sides of the aisle are filled with empty suits )

I'm sick of the whole bunch, and not just because of this latest bit of absurdity. At the rate they're going, it wouldn't surprise me if we eventually get to the point of having to check the rate weekly.

I just see red when they talk about the payroll "tax cut" which really means the necessary funds from the employee are NOT going into the Soc Sec coffers.

It would not be unlike the bank saying, in January, that you no longer needed to pay your tax/insurance escrow with your monthly mortgage payments, and then in December everyone complains about the huge property tax bill that comes in the mail.

FE