PO Box 26
New Castle, Colorado
Posted in General on Jan 04, 2011
Just 14 days before the Bush tax cuts were due to expire, President Obama signed the $859 billion tax-cut-and-stimulus package that cleared the House the day before and the Senate earlier in the week. The law includes provisions to:
The provision I find particularly interesting is the 2% reduction in the withholding of social security taxes from employee payrolls from 6.2% down to 4.2%. Employers are still required to ?match? at the previous rate of 6.2%. Theoretically, this 2% tax break increases the net take-home pay for most workers, thereby stimulating the economy. However, I have heard some talk about this particular incentive stimulating employers to reduce their already-pared payrolls down by another 2%, in fact intercepting the benefits of the provision. From the perspective of the working class, this strategy may seem as if their stimulus rug is being pulled out from under them. However, if one looks at the bigger picture, this strategy actually increases overall economic benefits of the provision. Here's how it works. The employee takes a 2% pay cut, but because of the 2% reduction in their withholding, their net pay remains unchanged. On the other side, the employer realizes not only the 2% salary and wage cost reduction, but also a reduction in the employer's social security ?match? as well as savings on both general liability and workers comp premiums. The net effect is a magnification of stimulus impact on the corporate level. The employer, who may have been considering closing his doors, may now be able to stay afloat, avoid further layoffs, or even be able to afford new hires. What your thoughts?
PO BOX 26, New Castle, CO 81647
Last Updated by Cyndi Peters on 2011-01-05 15:38:06
Posted in General on Dec 13, 2010
Wow! I can't believe that 2010 is so close to coming to an end. With the holidays quickly approaching, now is the perfect time to gather your tax information and prepare for your upcoming tax appointment. You can conveniently upload your files to our secure electronic safe deposit box at http://www.cmpfinancial.net/Client-Accounts. Contact us and we will set up your account. Below I have provided two checklists: one for your business and one for your individual tax returns. Feel free to share them with friends and colleagues.
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Last Updated by Admin on 2010-12-13 17:31:13