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Sat Sep 5, 2020, 09:56 AM

Thanks, 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, they’re 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 doesn’t make much sense. I’m 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

7 replies, 680 views

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Response to Eugene (Original post)

Sat Sep 5, 2020, 10:02 AM

1. It's refreshing to know that there are still some smart people around.

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Response to abqtommy (Reply #1)

Sat Sep 5, 2020, 10:09 AM

2. Actually a no-brainer scam only to help the con going into the election.

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Response to mobeau69 (Reply #2)

Sat Sep 5, 2020, 10:29 AM

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.

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Response to abqtommy (Reply #3)

Sat Sep 5, 2020, 11:04 AM

6. Medicare too. They can't stand progressive programs that work.

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Response to Eugene (Original post)

Sat Sep 5, 2020, 10:30 AM

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.

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Response to Eugene (Original post)

Sat Sep 5, 2020, 10:48 AM

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!

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Response to Eugene (Original post)

Sat Sep 5, 2020, 11:32 AM

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.

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