Tax Withholding in January: Up Sharply but January Movements Are Often Unusual and Temporary
Posted on January 28, 2020 Summary Tax withholding remittances jumped up in January by our measure to about 6.4 percent above year-ago amounts, which would be on par with where withholding would be without the recession. We don’t take the withholding jump up as an indicator of how the economy is doing. Daily withholding amounts […]
Individual Nonwithheld Payments–Mainly Quarterly Estimated Payments–Are Strong So Far in January
Posted on January 20, 2021 If you make quarterly estimated payments, I hope you made your last one for tax year 2020 last week. The last one was due to the IRS by January 15, and the early data suggest that overall estimated payments will probably be up compared to amounts paid last year, but […]
Total Private-Sector Wages Improved Just Slightly in December, According to the Monthly Establishment Survey
Posted on January 12, 2021 According to the monthly establishment survey of the Bureau of Labor Statistics (BLS), with the data for December released on Friday of last week, the economy lost jobs in December but total wage income still improved– just slightly. Total wage income rose because average hourly earnings increased for those working […]
Withholding Jumps Starting in Late December: Bonuses, Wage Shifting, or Deferred Payroll Tax Payments?
Posted on January 7, 2021 The daily amount of income and payroll tax withholding from paychecks has been slowly but steadily recovering since April, and has taken a distinct jump upward since mid-December. We expect the jump to be temporary. The year-end bonus season generally makes withholding amounts move around temporarily. Acceleration of some wage […]