Let’s Give Employees the Whole Truth
The House has paved the way for better employee understanding of just what goes on “behind the scenes” regarding employer contributions to Social Security and Medicare by passing a bill that will require this information to be disclosed on annual W-2 forms.
The Right-to-Know Payroll Act, as it is presently called, would require an amendment to the IRS Tax Code calling for new areas on the W-2 form to display employer contributions that are made on behalf of employees.
The bill was introduced by Rep. Peter Hoekstra (R-Mich) who hopes to encourage some public outcry by informing the nation’s employees of how much their employment actually costs. It is Hoekstra’s feeling that most U.S. employees are unaware of how much is actually contributed on their behalf to these federal programs. Awareness of the contributions made on their behalf might help employees realize that if these programs were reduced, more money would go into their pockets.
The bill, which passed in the House easily, is H.R.1264, and should be an interesting bit of legislation to follow.
Text of the bill:
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.