American Payroll Association Proposes Alternative to `Payroll Tax Holiday'.Business Editors SAN ANTONIO--(BUSINESS WIRE)--Nov. 28, 2001 The American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Payroll Association (APA (All Points Addressable) Refers to an array (bitmapped screen, matrix, etc.) in which all bits or cells can be individually manipulated. APA - Application Portability Architecture ), the industry's largest professional organization, is suggesting an alternative to the payroll tax Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. holiday proposed by Senator Pete Domenici Persondata NAME Domenici, Pietro Vichi ALTERNATIVE NAMES Pete Domenici SHORT DESCRIPTION United States Senator from New Mexico DATE OF BIRTH May 7, 1932 PLACE OF BIRTH Albuquerque, New Mexico DATE OF DEATH PLACE OF DEATH Pietro Vichi "Pete" Domenici (R-N R-N Raion (Russian, district; used in postal addresses) .M.). Senator Domenici has recommended that a "payroll tax holiday", a month-long reprieve reprieve (rĭprēv`): in law, see pardon. from the Social Security tax, is an efficient way to stimulate the economy. APA supports congressional efforts to pass an economic stimulus stimulus /stim·u·lus/ (stim´u-lus) pl. stim´uli [L.] any agent, act, or influence which produces functional or trophic reaction in a receptor or an irritable tissue. package, but recommends a temporary reduction in the income/withholding tax rates, rather than turning off the social security tax. "This is not a political assessment, but one based on the realities of processing payroll and maintaining compliance. It is likely that employers, software developers and payroll service providers would not be able to make the necessary modifications to implement the proposed payroll tax holiday by December 2001 or January 2002," explained Dan Maddux, executive director of the 21,000-member association. An analysis offered by the American Payroll Association and other industry groups detailed the many factors and tax calculations that would have to be changed to implement Domenici's proposal. These changes would be required within the private sector as well as within the Internal Revenue Service and Social Security Administration. Income tax, on the other hand, is something for which the employer is not held to such an exact calculation/reconciliation. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Maddux, changes that impact calculation and reporting of the Social Security tax and wage base may require months of programming to ensure successful implementation. Furthermore, payroll professionals are already in their busiest season, reconciling wage and tax information in order to file year-end tax returns, and programming for the many standard year-end changes, as well as those required under the Economic Growth and Tax Relief Reconciliation Act of 2001. "As it is now, standard employment tax and wage reports, such as Forms 941 and W-2, must be filed with necessary agencies and provided to employees by January 31. Any tax-law changes made at this point would be virtually impossible to implement and still meet those deadlines," added Maddux. "APA, as well as the private sector and government agencies and organizations, are committed and very supportive of working with Congress to pass an effective economic stimulus package to kick-start a slumping Slumping is a categorical description of an area of techniques for the forming of glass through the use of heating glass to the point where it becomes plastic. It is generally formed by the force of gravity. economy," adds Scott Mezistrano, APA government relations manager. The analysis offered by the industry groups acknowledges that regardless which proposal is eventually adopted, administrative inconvenience is to be expected at all levels, including employers and government agencies. The bottom line is that because of the many months necessary to ensure successful implementation, the primary purpose of the "payroll tax holiday" proposal -- near-term economic stimulus -- will not be achieved. |
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