Pete Hoekstra

Hoekstra Introduces Legislation Requiring W-2 Forms to Display Total Amount of Taxes
Right-To-Know National Payroll Act would Require Government to Disclose all Medicare and Social Security Taxes Paid by Both Employee and Employer

Share This Page Slashdot Del.icio.us Google Digg Reddit Newsvine Furl Yahoo Facebook

Washington, Jul 6, 2005 - U.S. Rep. Pete Hoekstra, R-Holland, today introduced legislation that would disclose on W-2 forms the total amount of payroll taxes paid to the government by both employee and employer.

“Most households pay the greatest amount of their taxes to Social Security and Medicare, yet half of those taxes are hidden from employees,” Hoekstra said. “Disclosing the full amount of payroll tax will help workers to realize how much money is actually taken out of their paychecks for Social Security and Medicare.”

The Right-To-Know National Payroll Act would amend the Internal Revenue Code of 1986 to require W-2 forms to disclose the employer’s share of taxes for old age, survivors and disability insurance, and for hospital insurance for the employee, as well as the total amount of such taxes for such employee. The House passed the bill in the 106th Congress, but it was never considered by the Senate.

The 12.4 percent Social Security tax and the 2.9 percent Medicare tax are divided equally between employers and employees, but W-2s currently only disclose half the cost of these programs.

“People are often not aware about this additional tax on what they earn, money that could provide for more take-home pay or for better retirement or health benefits,” Hoekstra said. “The right-to-know payroll form would enable workers to evaluate the costs and benefits of government programs and better understand how their money is spent.”