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:

You may like these other stories...

Some of your clients may get away to business conventions from time to time. It gives them a chance to rub shoulders with colleagues, catch up on the latest developments, and fine-tune their skills. And, when the meetings or...
PwC must face $1 billion lawsuit over MF Global adviceA federal judge on Wednesday ordered PricewaterhouseCoopers (PwC) to face a $1 billion lawsuit claiming that its bad accounting advice was a substantial cause of the...
Being an accountant doesn't mean you're giving investment advice to clients. However, at tax time, accountants often have to deal with the results of any investment advice clients obtained during the year—the...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.