Economy "No taxes on Social Security, Overtime and tips" just passed

[Belaya Smert]

There never should have been taxation on social security payments. Same with tips.

 

[jimjamjammer]

Some companies offer overtime incentives to salaried workers already and it's becoming more and more common. If a rule like this exists everyone on salary will get 80 hour contracts so the majority of their income will be considered overtime and they can receive it tax free and it won't actually cost employers anything extra.

I doubt that. You assume people will want to actually work 80hrs, which seems unlikely. Also employers still actually have to pay them out of their own pocket. You're talking like employers are getting free money to pay for the OT.

Where I am, salaried employees rarely get OT pay. Companies would rather give you time off instead of paying you time and a half.

The self employed angle is the only thing that stands out as a possible issue. The rest sounds like conspiracy BS as a reason to not like it.

 

[MacGregor]

Libtards are just parroting this guy. Embarrassing.

 

[Crazy Source]

Actually sensible perspective from someone who leans right, which is refreshing.

Sensible? "Yeah, I won't dig into this very deeply to realize what's really going on. I'll just cross my fingers and hope for the best!" GTFO. And after they realize they have been F'd in the A they will vote the bastards in again.

 

[Rational Poster]

I doubt that. You assume people will want to actually work 80hrs, which seems unlikely. Also employers still actually have to pay them out of their own pocket. You're talking like employers are getting free money to pay for the OT.

Where I am, salaried employees rarely get OT pay. Companies would rather give you time off instead of paying you time and a half.

The self employed angle is the only thing that stands out as a possible issue. The rest sounds like conspiracy BS as a reason to not like it.

I think you're missing the point entirely. Salaried workers wouldn't actually be working for more than they already do, and companies wouldn't be paying them more than they already do. The two parties would just come to an arrangement so the employees don't have to pay tax on the majority of their income by structuring their contracts in a certain way because it benefits the employer as well, they're also on salary and would want to not pay taxes on their own income.

 

[JudoThrowFiasco]

Some companies offer overtime incentives to salaried workers already and it's becoming more and more common. If a rule like this exists everyone on salary will get 80 hour contracts so the majority of their income will be considered overtime and they can receive it tax free and it won't actually cost employers anything extra.

Overtime only has to be approved for hourly workers, and it's at the discretion of the employer not the government.

This isn't even getting into the mess of self employed salaried people who already make up everything about their compensation and work hours.

Which state are self employed people eligible for overtime?? How would that even work?

 

[Rational Poster]

Which state are self employed people eligible for overtime?? How would that even work?

1099s wouldn't be, but there are certain types of business ownership where you can absolutely pay yourself basically whatever and however you want.

Like a legal or accounting firm, a private brokerage, etc

 

[cincymma79]

they are abusing it how?

Are you new to the queef brigade in here?
Step one
Make up something to be offended by

Step two
cry like a bitch

Step three
Have other professional queefers come in to argue over how much the should queef


Anyway this is great and fuck those guys

 

[Cool Hand Luke]

salaried and over time?

i wish.

my job is often 24 hours a day and i can't claim over time

 

[HockeyBjj]

So if tips aren't taxed anymore, can the standard tip from from 18% to 13% since that would be the same take home pay for the server?

 

[JudoThrowFiasco]

1099s wouldn't be, but there are certain types of business ownership where you can absolutely pay yourself basically whatever and however you want.

Like a legal or accounting firm, a private brokerage, etc

Yeah, you can pay yourself any salary you want (assuming it wouldn't cripple your business) but FLSA doesn't see them as eleigable for overtime so they aren't listing it on remittances

 

[DanSavage]

What did income tax originally replace.

Tariffs. Prior to 1913, there was no income tax.

Salaried people will abuse the living fuck out of no tax on overtime.

Suddenly everyone will be working 80 hours and get 3/4 of their income tax free.

I'm sure someone in one of the two houses have figured out that a no limit elimination of taxes on overtime would be a massive exploitable tax loophole for salaried workers, right?

Generally speaking, salaried employees don't get paid overtime as they are usually classified as exempt.

Under the Fair Labor Standards Act (FLSA), any employee that’s categorized as an exempt employee is ineligible for overtime pay—even when they put in more than 40 hours of work in a week. Because many salaried positions are categorized as exempt, they would fall under the overtime exemption umbrella—and, as such, not be entitled to overtime pay.

To be considered exempt, an salaried employee must earn not less than $684 per week ($35,568 per year) or, if a computer employee and hourly, not less than $27.63 per hour.

Only non-exempt employees are eligible for overtime. These are usually hourly employees who must track the hours they work.

See: Do Salaried Employees Get Overtime?

 

[Rational Poster]

Yeah, you can pay yourself any salary you want (assuming it wouldn't cripple your business) but FLSA doesn't see them as eleigable for overtime so they aren't listing it on remittances

The FLSA just means they're not required to pay overtime by law if salary worker work over 40hrs. It doesn't mean they can't choose to structure their income that way.

The incentive to do so just didn't exist and this law creates the incentive to pay out salary in such a way.

 

[Rational Poster]

Tariffs. Prior to 1913, there was no income tax.





Generally speaking, salaried employees don't get paid overtime as they are usually classified as exempt.

Under the Fair Labor Standards Act (FLSA), any employee that’s categorized as an exempt employee is ineligible for overtime pay—even when they put in more than 40 hours of work in a week. Because many salaried positions are categorized as exempt, they would fall under the overtime exemption umbrella—and, as such, not be entitled to overtime pay.

To be considered exempt, an salaried employee must earn not less than $684 per week ($35,568 per year) or, if a computer employee and hourly, not less than $27.63 per hour.

Only non-exempt employees are eligible for overtime. These are usually hourly employees who must track the hours they work.

See: Do Salaried Employees Get Overtime?

This is based on the current state of things where there is no benefit to the employer or employee to declare overtime pay. It's not that they're currently ineligible for overtime compensation at all, employers are not required to by law to pay them overtime so they don't.

If law makes a certain type of income tax free, employers and employees will work together to exploit that.

 

[JudoThrowFiasco]

The FLSA just means they're not required to pay overtime by law if salary worker work over 40hrs. It doesn't mean they can't choose to structure their income that way.

The incentive to do so just didn't exist and this law creates the incentive to pay out salary in such a way.

Source that for me.

For a worker to be protected by the minimum wage and overtime pay requirements of the FLSA, the worker must be an “employee” of the employer, meaning that there is an employment relationship between the worker and employer. Independent contractors do not have these protections. Whether a worker is an employee or an independent contractor under the FLSA is determined by looking at the economic realities of the worker’s relationship with the employer. If the economic realities show that the worker is economically dependent on the employer for work, then the worker is an employee. If the economic realities show that the worker is in business for themself, then the worker is an independent contractor. The economic realities of the entire working relationship are looked at to decide whether a worker is an employee or an independent contractor. Employment under the FLSA is not determined by technical concepts or common law standards of control; it is broader than the common law standard often applied to determine employment status under other Federal laws.

 

[DanSavage]

The FLSA just means they're not required to pay overtime by law if salary worker work over 40hrs. It doesn't mean they can't choose to structure their income that way.

The incentive to do so just didn't exist and this law creates the incentive to pay out salary in such a way.

And, how would that work?

How can an employer structure an exempt employee's income to declare and pay overtime and not be taxed and have it not run afoul of the FLSA?

This is based on the current state of things where there is no benefit to the employer or employee to declare overtime pay. It's not that they're currently ineligible for overtime compensation at all, employers are not required to by law to pay them overtime so they don't.

If law makes a certain type of income tax free, employers and employees will work together to exploit that.

The FLSA clearly spells out the categories of employees that have to be declared exempt and as such are ineligible for OT.

There is no wiggle room.

 

[jk7707]

this is dumb at best, it all comes down to the narrative that's pushed.

leftwing rag poll "families over billionaires"

nobody going to give a shit if it's fraud that is caught and cut.

You think any poll is going to favor cutting Medicaid? Please find one and show me. Or fuck off with your pathetic excuses for gutting safety net programs to pay for tax cuts for the wealthy.

 

[nixkid]

Have we not seen enough evidence yet that the Democratic Party doesn't give a shit about Americans?


View attachment 1084118

Maybe its because it was in a big budget bill that was full of dumb shit?

If I put caviar in the middle of a plate of dog shit, would you eat it just because you like caviar?

No Democrat is going to vote for a Trump budget bill that the Republicans cooked up without any Democratic input (because they don't need Democratic votes so there is no need for them to make concessions). This is politics 101.

 

[Rational Poster]

Source that for me.

For a worker to be protected by the minimum wage and overtime pay requirements of the FLSA, the worker must be an “employee” of the employer, meaning that there is an employment relationship between the worker and employer. Independent contractors do not have these protections. Whether a worker is an employee or an independent contractor under the FLSA is determined by looking at the economic realities of the worker’s relationship with the employer. If the economic realities show that the worker is economically dependent on the employer for work, then the worker is an employee. If the economic realities show that the worker is in business for themself, then the worker is an independent contractor. The economic realities of the entire working relationship are looked at to decide whether a worker is an employee or an independent contractor. Employment under the FLSA is not determined by technical concepts or common law standards of control; it is broader than the common law standard often applied to determine employment status under other Federal laws.

Source what?

I can't source something for which the context does not yet exist. There's no law that says you can't compensate salary workers with overtime. However, there are laws starting to emerge now in certain states where paying salaried workers overtime is required. Alaska, Colorado, Nevada, and California so far have adopted such laws.

 

[Rational Poster]

And, how would that work?

How can an employer structure an exempt employee's income to declare and pay overtime and not be taxed and have it not run afoul of the FLSA?



The FLSA clearly spells out the categories of employees that have to be declared exempt and as such are ineligible for OT.

There is no wiggle room.

FLSA just states that you don't have to pay them overtime by law and they're exempt in that context, it doesn't mean you can't paid salaried employees overtime by choice.