So everyone who works in DC is now getting a salary reduction? |
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"Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages, and taxes paid by the employer based on the employee's wages. The first kind are taxes that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax (PAYE), or pay-as-you-go tax (PAYG) and often covering advance payment of income tax, social security contributions, and various insurances (e.g., unemployment and disability). The second kind is a tax that is paid from the employer's own funds and that is directly related to employing a worker. These can consist of fixed charges or be proportionally linked to an employee's pay. The charges paid by the employer usually cover the employer's funding of the social security system, and other insurance programs. The economic burden of the payroll tax falls almost entirely on the worker, regardless of whether the tax is remitted by the employer or the employee, as the employers’ share of payroll taxes is passed on to employees in the form of lower wages than would otherwise be paid.[1][2][3]"
https://en.m.wikipedia.org/wiki/Payroll_tax. I am not sure which kind of payroll tax it is, but i thought a fuller definition could be helpful. |
How is this relevant to you then? Since you believe in taking care of your employees so much, I'm sure they already have paid leave. |
It's a payroll tax. It's paid by the employer. |
| So we are taxing dc employers for MD and VA residents. And if we drive business to relocate there, so what about the impact on pur own citizenry and tax base? Ridiculous. |
We have really good policies. This will definitely cost us more money, but we will bite the bullet and do it. |
Our DC economy is doing really well. I am ok with this. What I am not ok with is the terrible DCRA and those crazy regulations and incompetent people. I wish they would fix that first. |
| They need to limit it to DC residents. DC businesses should not be subsidizing MD and VA residents. |
Why will you need to bite the bullet? Sounds like you already give your employees lots of paid leave. Do companies that already give paid leave also need to pay the new tax (in addition to the leave they're already paying for)? Because that would be unfortunate. |
Conversely, MD and VA residents then should not be supporting DC businesses. I like your segregationist style. Let's see how that ends up working out for ya. |
DP. They already don't support DC businesses as much as DC residents do. Surely this is not surprising to you. |
But if 64% of the benefits may go to VA and ND residents, then are 64% of the benefits being paid for by VA and ND residents? Sounds like a good deal for DC residents to me. |
Payroll tax. Paid by the employer. |
Yes. Who employs DC, VA, and MD residents. |
| I don't get the whole point of the thread. If the taxes are levied on the employer to cover its employees, then the benefits should go to the same employees. It's no different from pulling out medicare for an employee, and crediting it to that employee. |