Payroll Processors Say Two-Month Payroll Tax Fix Undoable

[clearvision]

FOX News:

House Republicans defending their opposition to a two-month payroll tax extension are pointing to a letter sent by a payroll processing trade organization that says even if the bill were made law, it's logistically impossible to make the changes in tax software before the extension expires.

In a letter to the the leaders of the House and Senate Ways and Means committees, the National Payroll Reporting Consortium, whose members serve 1.5 million employers and more than one-third of the private-sector workforce, wrote that the Senate's two-month extension allows "insufficient lead time" to institute changes by Feb. 29.

The group wrote that a shortened deadline could create "substantial problems, confusion and costs affecting a significant percentage of U.S. employers and employees."

According to the proposed law, the two-month extension of a 4.2 percent taxable wage is applied only to the first $18,350 of income. Wages exceeding $18,350 paid during the first two months of 2012 would be subject to a 6.2 percent Social Security tax rate.

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Congress has no concept of real world impact of what they do.

[Pepper]

The group wrote that a shortened deadline could create "substantial problems, confusion and costs affecting a significant percentage of U.S. employers and employees."

 

Obama profits from confusion.