The Department of the Treasury and the IRS issued guidance Friday for how to implement that payroll tax deferral President Donald Trump announced earlier this month.
A payroll tax deferral means nothing for the tens of millions of people out of work because they have no paycheck and therefore no payroll tax to be deferred.
Also, this deferral is supposed to kick in Sept. 1, which is going to be a challenge, to put it nicely, for the businesses and payroll processors that got this news Friday.
The “deferral” part of the payroll tax deferral means this may not be quite the tax break many folks were hoping for.
The president’s move doesn’t so much change what people pay in taxes —just when they pay it. So workers might get a small pay bump for a few months.
But, said Janet Holtzblatt at the Tax Policy Center, come Jan. 1, “they should know that the money is going to start being repaid around a time that the Christmas bills also come due.” That will be in addition to payroll taxes that restart then.
That is giving businesses some pause before getting on board.
“I think it’s very difficult for widespread adoption, absent Congress and acting to provide greater clarity and to forgive the deferred taxes,”said Neil Bradley, chief policy officer at the U.S Chamber of Commerce.
A lot is still unclear about this policy, he said, like what happens if someone changes jobs during the deferral period or is laid off.
“How do you reconcile between employers? You have substantial record-keeping issues,” Bradley said.
All this leaves business owners in a bit of a bind.
Davis Senseman, a lawyer in Minnesota, has been getting a lot of questions from small business owners.
“A lot of them are saying, ‘if I don’t do this, like, how do I talk to my employees about it, so they don’t think that somehow they’re, you know, getting ripped off?” Senseman said.
And as far as Senseman’s business, “I pay myself as an employee … I use a payroll service, and I am not going to change anything.”
The payroll tax deferral technically kicks in Tuesday, but it will probably take any businesses that do participate at least a couple of weeks to get their systems up to speed.
What’s going on with extra COVID-19 unemployment benefits?
It’s been weeks since President Donald Trump signed an executive memorandum that was supposed to get the federal government back into the business of topping up unemployment benefits, to $400 a week. Few states, however, are currently paying even part of the benefit that the president promised. And, it looks like, in most states, the maximum additional benefit unemployment recipients will be able to get is $300.
What’s the latest on evictions?
For millions of Americans, things are looking grim. Unemployment is high, and pandemic eviction moratoriums have expired in states across the country. And as many people already know, eviction is something that can haunt a person’s life for years. For instance, getting evicted can make it hard to rent again. And that can lead to spiraling poverty.
Which retailers are requiring that people wear masks when shopping? And how are they enforcing those rules?
Walmart, Target, Lowe’s, CVS, Home Depot, Costco — they all have policies that say shoppers are required to wear a mask. When an employee confronts a customer who refuses, the interaction can spin out of control, so many of these retailers are telling their workers to not enforce these mandates. But, just having them will actually get more people to wear masks.
You can find answers to more questions on unemployment benefits and COVID-19 here.
As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.
Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.
Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.
"pay" - Google News
September 01, 2020 at 04:47AM
https://ift.tt/3lELQ6G
Payroll tax deferral: holiday now, pay later? - Marketplace
"pay" - Google News
https://ift.tt/301s6zB
Bagikan Berita Ini
0 Response to "Payroll tax deferral: holiday now, pay later? - Marketplace"
Post a Comment