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: