Current status of "tax Holiday"

[sallybutler]

What Trump's Payroll Tax Deferral Means for Your Paycheck

While the payroll tax cut could give people bigger paychecks now, they could get stuck paying that money back in the beginning of the year.

www.newsweek.com

If your employer follows this, make sure you save any increases in your paycheck.

 

[RidgeSprinter]

Catch 22

Social Security contributions are equally split between employees and employers with each party paying 6.2 percent. Trump’s memorandum deferring the payments could boost a person’s paycheck by 6.2 percent, but it’s money they may be responsible for paying back one day.

And there is the Catch 22. It looks good on the surface.

As it currently stands, employers must repay withheld taxes by April 30, according to a three-page guidance from the IRS. If not paid by April 30, interest, penalties and additions to tax will begin to accrue.

Get a break now, but you have to pay it back later.

Dubbed the “affected taxpayer” in the document, employers can “make arrangements to otherwise collect the total applicable taxes from the employee.” This means people earning between $35,000 and $104,000 could get stuck owing taxes ranging from $751 and $2,232.

**Trump is scamming you again. **

However

Along with being unfair to ask people to make the decision, the Chamber of Congress said it would be “unworkable” to implement a system that’s based on employee decisions. Therefore, it’s likely many employers will decline to implement the deferral, rendering the memorandum’s goal of providing people with bigger paychecks, moot.

Do you have a smart Employer or a Dumb Employer?