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Related: About this forumThanks, but no: Small businesses shun payroll tax deferral
Source: Associated Press
Thanks, but no: Small businesses shun payroll tax deferral
By JOYCE M. ROSENBERG
September 5, 2020
NEW YORK (AP) As employees of small businesses get their first September paychecks, theyre probably receiving their usual amount company owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred.
The order President Donald Trump signed Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must make under $4,000 every two weeks to qualify. Trump said the order was aimed at putting more money into Americans pockets during the coronavirus outbreak.
Small business owners are wary about the plan. The tax must still be paid between Jan. 1 and April 30 of next year, which means employees could take an unwanted financial hit or companies might ultimately have to pay the government if staffers leave.
Attorney John Strohmeyer is having the payroll for his Houston firm processed as per usual.
It doesnt make much sense. Im not getting a tax break as an employee or employer. The money is still due by April 30 of next year, Strohmeyer says.
-snip-
By JOYCE M. ROSENBERG
September 5, 2020
NEW YORK (AP) As employees of small businesses get their first September paychecks, theyre probably receiving their usual amount company owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred.
The order President Donald Trump signed Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must make under $4,000 every two weeks to qualify. Trump said the order was aimed at putting more money into Americans pockets during the coronavirus outbreak.
Small business owners are wary about the plan. The tax must still be paid between Jan. 1 and April 30 of next year, which means employees could take an unwanted financial hit or companies might ultimately have to pay the government if staffers leave.
Attorney John Strohmeyer is having the payroll for his Houston firm processed as per usual.
It doesnt make much sense. Im not getting a tax break as an employee or employer. The money is still due by April 30 of next year, Strohmeyer says.
-snip-
Read more: https://apnews.com/1c12bd77a806850c3646c0e60500ebe7
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Thanks, but no: Small businesses shun payroll tax deferral (Original Post)
Eugene
Sep 2020
OP
abqtommy
(14,118 posts)1. It's refreshing to know that there are still some smart people around.
mobeau69
(11,131 posts)2. Actually a no-brainer scam only to help the con going into the election.
abqtommy
(14,118 posts)3. I agree with that, but it's also a reTHUG wet dream to dump Social Security and has been
ever since FDR set it up.
mobeau69
(11,131 posts)6. Medicare too. They can't stand progressive programs that work.
Freddie
(9,256 posts)4. I'm a payroll admin
And my corporate masters decided not to do this. THANK YOU, what a nightmare from an administrative end. Plus incredibly stupid. Before they decided, employees begged me not to do this as they (rightfully) saw it as a booby trap.
Wawannabe
(5,631 posts)5. I told my small employer NOT
To stop taking these taxes out. I don't wanna pay a lump sum next year.
She replied that she wasn't planning to because it was a hassle. Whatevs! It is plain and simple STUPID!
tRump can FUCK OFF!
lettucebe
(2,336 posts)7. It's good they are ignoring it -- what's the point when must be repaid after only three months?
It's literally the worst deal I've ever heard. Here's a few extra dollars, but you may want to save them since you have to give back in 90 days. Idiotic.