Major employers are currently in a state of limbo as the US Treasury Department has not yet issued instructions on how to manage President Trump’s order delaying the due date for employee payroll taxes. A fortnight has passed since the president issued his directive, which deferred the deadline to pay worker’s portions of Social Security taxes from September 1 until the end of the year.
Concerns are growing from employers - responsible for submitting those payments to the Internal Revenue Service - who are waiting to learn from the agency how to handle any tax bill when it comes due later. The payroll tax deferral was lauded by President Trump as a boost for workers during the COVID-19 crisis and the economic downturn which followed. However, some companies reacted unfavourably because the taxes still ultimately have to be paid without action from Congress to forgive the liability. Bloomberg explores how things currently stand.Major employers are currently in a state of limbo as the US Treasury Department has not yet issued instructions on how to manage President Trump’s order delaying the due date for employee payroll taxes. A fortnight has passed since the president issued his directive, which deferred the deadline to pay worker’s portions of Social Security taxes from September 1 until the end of the year.
Concerns are growing from employers - responsible for submitting those payments to the Internal Revenue Service - who are waiting to learn from the agency how to handle any tax bill when it comes due later. The payroll tax deferral was lauded by President Trump as a boost for workers during the COVID-19 crisis and the economic downturn which followed. However, some companies reacted unfavourably because the taxes still ultimately have to be paid without action from Congress to forgive the liability. Bloomberg explores how things currently stand.