US Chamber asks Treasury to clear up 'serious concerns' about payroll tax deferral [View all]

[highplainsdem]

Source: The Hill

The U.S. Chamber of Commerce on Wednesday asked the Treasury Department to answer “significant questions” raised by President Trump’s executive order allowing a deferral of payroll taxes.

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“While the recently issued Executive Order (EO) on payroll tax deferral is well-intended to provide relief, it has raised serious concerns for both employers and employees,” wrote Caroline Harris, the Chamber’s vice president of tax policy and economic development.

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While Trump’s executive order may be a backdoor way of securing the payroll tax deferral, the lack of clear guidance as to how it would be implemented, who would be responsible for doing so and what would happen to deferred payments has raised major concerns among lawmakers and tax policy experts. The order also raises a slew of questions about how to handle bonuses, the pay of seasonal workers and employees who leave before the deferral period, Harris wrote.

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Harris also cited concerns about the “substantial tax liability for employees at the end of the deferral period” that “threatens to impose serious hardships on employees who will face a large tax bill at the end of the deferral period.”

Read more: https://thehill.com/policy/finance/511769-us-chamber-asks-treasury-to-clear-up-serious-concerns-about-payroll-tax