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by greghinch 4924 days ago
Wasn't the 2% tax cut on the side the employer pays? That means if you paycheck goes down because of it, your employer is pretty much a jerk.
3 comments

I don't work in HR so I'm not familiar with how companies deal with this, but I would be surprised if it doesn't hit your paycheck somehow -- directly deducting it from your current pay may be less likely than factoring the added cost into funds available for annual raises.
Nope, it was only on the employee side of the tax.
> Wasn't the 2% tax cut on the side the employer pays? That means if you paycheck goes down because of it, your employer is pretty much a jerk.

In the short run, this would make a difference, but not in the long run - the incidence of payroll taxes has been shown to fall almost entirely (~98%) on the employees.

(For those unaware: the incidence of a tax[1] is a way of describing who really bears the burden, which is completely unrelated to who nominally pays a tax out-of-pocket).

[1] http://en.wikipedia.org/wiki/Tax_incidence