Deferring payroll taxes
Sept. 16, 2020
President Trump signed an executive order last month that allows employers to “defer” payroll taxes for the rest of the year. We spoke with CPA Tom Wheelwright about why this may not be such a great idea for employers or employees.
Wheelwright says that this might start off with benefits but the taxes are being deferred not pardoned. This means we would be getting a big paycheck now and then a very small one in 2021.
Then the question would be why defer taxes, why not have a payroll tax holiday? Wheelwright addresses this claim as well by stating that this probably should’ve happened but wasn’t in the president’s power. Congress has the power to make a payroll tax holiday and they’re looking into it but it hasn’t happened yet.