Holding: The court, in a June 2017 decision, held that Paychex was the statutory employer of the worksite employees and thus was entitled to a refund of the overpaid Social Security taxes
For an individual living in a country with an SSTA, if the net investment income tax is a social security tax
, it should be excluded from applicability because:
Social security tax
cut will benefit larger part of the economy ...
This will result in such corporations having to pay no more in Social Security taxes
than a single employer pays.
With the direct payments of the employer covering the entire tax, the demand curve for labor shifts down by the total tax per worker--the marginal value of workers is now worth less to the employer at every employment level by an amount equal to the Social Security tax
paid for each worker.
White House memos indicate that the president wants to allow undefined "younger workers" to invest up to 4 percent of their income--two-thirds of the Social Security taxes
withheld from their pay--into private investment accounts.
More than 70 years later, as Congress and the nation debate the future of Social Security--and in particular, whether to allow workers to direct a portion of their Social Security taxes
into private investment accounts--the relevance of this history is becoming a matter of fierce dispute.
What people don't understand and the news media doesn't explain very often, said Shapiro, is that the Social Security tax
is not as progressive as the income tax.
(23) Social security taxes
will be assessed at the same time the employee is subject to income tax.
First, recapture taxes, penalties and other taxes (related to retirement plans, to the underpayment of estimated tax, to uncollected employee social security tax
on tips and on group-term life insurance, and to excess "golden parachute payments"), and exempt organizations excise taxes are added; excess social security taxes
and the earned income credit (EIC) that is used to offset nonincome taxes are subtracted.(6) Second, fiduciary income taxes are added, These taxes are included in the payments series because personal income includes fiduciary income.
Food or beverage establishments are provided with a business tax credit, equal to the amount of the employer's Social Security tax
obligation (7.65 percent) attributable to reported tips in excess of those treated as wages for purposes of satisfying the minimum wage provisions of the Fair Labor Standards Act (FLSA).
Based on that increase, the maximum amount of earnings subject to the Social Security tax
(taxable maximum) will increase to $117,000 from $113,700.