Federal Tax Holiday for Pharmacists

Started by Momus
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Momus

Momus

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APhA coronavirus watch: Pharmacists added to federal tax holiday legislation

The original bill only applied to physicians, nurses, physician assistants, nurse practitioners, hospital and medical facility support staff, emergency medical technicians, paramedics, firefighters, corrections officers, and law enforcement officers. Huizenga is expected to attempt to add the...
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They almost left us out... It tells you how little the public thinks of us.

Fat paycheck if it passes.
 
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Momus said:
Up to 150k, you don't pay federal tax withholding for 4 months (<15-20% effective tax rate).
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Don't you still owe the taxes later? I feel like people would spend the extra money now and have a rude awakening at tax time next year.
 
Well if that passes, I am suspending putting into my 401k while I am paying no income tax, then dump more in near the end of the year to still hit the max contribution.
 
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Wickett said:
Well if that passes, I am suspending putting into my 401k while I am paying no income tax, then dump more in near the end of the year to still hit the max contribution.
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You'll miss out on the company match if you do that.
 
I wonder how this will be operationalized and who will qualify? Only pharmacists working in hospitals? Retail? Industry? Anyone with an active license? Does that mean Larry Merlo gets a tax break too?
 
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Pharmacy is a Scam said:
I wonder how this will be operationalized and who will qualify? Only pharmacists working in hospitals? Retail? Industry? Anyone with an active license? Does that mean Larry Merlo gets a tax break too?
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If you provide services in a county with at least 1 confirmed case. I read the bill and it looks like it could be for any pharmacist as long as there was a confirmed case in the county where you work.
 
SunshineDays84 said:
If you provide services in a county with at least 1 confirmed case. I read the bill and it looks like it could be for any pharmacist as long as there was a confirmed case in the county where you work.
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So basically any licensed pharmacist in a county with confirmed case? What about unemployed pharmacists or registered pharmacists who don't work in a pharmacy anymore?
 
mentos said:
So basically any licensed pharmacist in a county with confirmed case? What about unemployed pharmacists or registered pharmacists who don't work in a pharmacy anymore?
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"For purposes of this section, the term ‘‘applicable period’’ means the period beginning on February 15, 2020, and ending on June 15, 2020."
So I think if you worked within this time frame???

My question is, how would this work? Are we getting a check at the end of this period after everything is over or what?
 
SunshineDays84 said:
"For purposes of this section, the term ‘‘applicable period’’ means the period beginning on February 15, 2020, and ending on June 15, 2020."
So I think if you worked within this time frame???

My question is, how would this work? Are we getting a check at the end of this period after everything is over or what?
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It sounds like the taxes would not be deducted from your paycheck.
 
Wickett said:
Why would I be missing out on my company match?
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Most companies don't offer true up anymore. If yours still does then you're good. I know that CVS and Walgreens no longer match if you don't have a contribution. That's why it's important not to max out in the beginning of the year, you have to make sure all 26 paychecks have a contribution to get the full match.
 
This could be implemented like the military combat pay exclusion

How Do I Report the Combat Pay Exclusion?

Ordinarily, you don't have to do anything for this exclusion to apply. The exclusion will be reflected on your Form W-2. The wages shown in box 1 of your 2019 Form W-2 shouldn't include military pay excluded from your income under the combat pay exclusion provisions. If it does, you will need to get a corrected Form W-2 from your finance office.
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Sounds too good to be true though. I wouldn't change my withholding accordingly until this actually passes and confirm how it's going to be implemented.
 
owlegrad said:
I doubt unemployed pharmacists pay much income tax.
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Oh ya duh. That would suck if a pharmacist got laid off right before this happened. They would miss out on both the stimulus check and this, although they'd get unemployment.
 
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Am I reading this bill correctly, it could be extended an additional 3 months? Holy crap.
 
ValeRx said:
If this is modeled after combat zone tax exclusion, all we ever paid while deployed was social security. The way it works is this: You get your paycheck, with all deductions out, and then you are issued a second paycheck refunding all but social security tax.
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That sounds fantastic!
 
mentos said:
Most companies don't offer true up anymore. If yours still does then you're good. I know that CVS and Walgreens no longer match if you don't have a contribution. That's why it's important not to max out in the beginning of the year, you have to make sure all 26 paychecks have a contribution to get the full match.
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Ah ok. Yea I'll have to double check but my impression is my company matches all at once each year/it wouldn't be affected.
 
wagrxm2000 said:
If not I hope all pharmacists give a little to their techs in some way.
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Where I'm at, the techs are getting more $$/hr during this whole thing on top of the stimulus. I dont qualify for the extra pay because I'm "salaried" and obviously dont get any stimulus. It seems it would relatively even out if just for four months....if it gets extended then yea I'd give some for sure. I already give out a portion of bonuses I get, personally. I would hope techs would be included anyway in this program (not sure about any clerks, though).
 
Wickett said:
Well if that passes, I am suspending putting into my 401k while I am paying no income tax, then dump more in near the end of the year to still hit the max contribution.
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Would it be smart for us all to switch to Roth 401k this year??
 
wagrxm2000 said:
Why would we be involved but not our technicians?
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Because technicians are not considered clinicians. The whole point of this bill is to help provide relief to clinical staff -- and despite my negativity about the role/value of a pharmacist they are still considered healthcare workers which is why it's looking like we will be added. But the buck has to stop somewhere -- if you say that techs are also considered healthcare staff then what about the administrative assistant that works in the hospital? The hospital drug delivery guy? Clown doctors? Medical billers? etc.
 
Pharmacy is a Scam said:
Because technicians are not considered clinicians. The whole point of this bill is to help provide relief to clinical staff -- and despite my negativity about the role/value of a pharmacist they are still considered healthcare workers which is why it's looking like we will be added. But the buck has to stop somewhere -- if you say that techs are also considered healthcare staff then what about the administrative assistant that works in the hospital? The hospital drug delivery guy? Clown doctors? Medical billers? etc.
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You clearly don't understand my point
 
I think since most front line clinicians did not qualify for the $1200 stimulus, this was a way to “rectify” that, IMO.

I use rectify in quotes, because that implies the progressive nature of the stimulus needed fixing. Plus, it’s two totally different things.

I’m usually bullish on government programs and legislation, but my gut says this won’t pass. I’ll bet a whole $0.10 on it.


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My job is allowing a 100% PTO cash out due to the pandemic. If this passes I will be taking advantage of that for sure. It's not like I was going anywhere this year.
 
msweph said:
Wow think this will pass? Does it matter if your household income exceeds 150K?

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Here's what the article says

"The legislation would suspend federal tax withholding for 4 months and give U.S. Department of Treasury Secretary Steven Mnuchin the authority to extend withholding for an additional 3 months. The tax holiday would apply to all income up to $150,000 annually, with income beyond that amount taxed at its regular rate. "
 
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confettiflyer said:
I think since most front line clinicians did not qualify for the $1200 stimulus, this was a way to “rectify” that, IMO.

I use rectify in quotes, because that implies the progressive nature of the stimulus needed fixing. Plus, it’s two totally different things.

I’m usually bullish on government programs and legislation, but my gut says this won’t pass. I’ll bet a whole $0.10 on it.


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I just think in an election year, people on both sides of the aisle will be rushing to show they are doing everything to show support for anything related to relief during this time. I would personally be shocked if it didn't pass....this was, after all, proposed by a pretty conservative congressman to begin with.
 
Wickett said:
I just think in an election year, people on both sides of the aisle will be rushing to show they are doing everything to show support for anything related to relief during this time. I would personally be shocked if it didn't pass....this was, after all, proposed by a pretty conservative congressman to begin with.
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I think I actually started to change my mind a bit after I posted my reply (when I actually read the article...lol, long story I have an aggressive ad blocker on my phone and have to launch SDN links in a separate browser).

But hey, I’ll believe it when it passes the senate. It’s still a tax break to a high income group.


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confettiflyer said:
I think I actually started to change my mind a bit after I posted my reply (when I actually read the article...lol, long story I have an aggressive ad blocker on my phone and have to launch SDN links in a separate browser).

But hey, I’ll believe it when it passes the senate. It’s still a tax break to a high income group.


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Yea nothing is set in stone/who knows what will happen with it. I just don't see anyone on either side wanting to be accused of not supporting healthcare workers at this time. No one gives a crap about us, but the general public loves nurses and physicians, especially now.
 
Wickett said:
Yea nothing is set in stone/who knows what will happen with it. I just don't see anyone on either side wanting to be accused of not supporting healthcare workers at this time. No one gives a crap about us, but the general public loves nurses and physicians, especially now.
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The democrats delayed the passing of the stimulus bill by a few days because they wanted to push their agenda and add things completely unrelated to the coronavirus to the bill as this bill was a "once in a lifetime opportunity" for them.

I could very easily see politics delaying or amending what the final version of this bill might look like.
 
Pharmacy is a Scam said:
The democrats delayed the passing of the stimulus bill by a few days because they wanted to push their agenda and add things completely unrelated to the coronavirus to the bill as this bill was a "once in a lifetime opportunity" for them.

I could very easily see politics delaying or amending what the final version of this bill might look like.
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That’s how it’ll die, repubs trying add an abortion amendment, dems trying to add something about climate change, bill ded. Very ded.


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