Are you an employee wondering if you should ask your employer about having your payroll taxes deferred through the end of the year, or are you an employer wondering if you should offer this to your employees?
One of the key items in this legislation is the word deferred, and there is some confusion around the meaning of the deferral for payroll taxes. It seems that many believe that that means it would not have to be repaid, but deferral only means a postponement of the amount due.
With President Trump’s suggestion of deferring the social security tax for employees through the end of the year, it means that the taxes would need to be paid by April, 2021, if not paid through payroll check withdrawals through the end of the year.
Generally, it’s my recommendation that this not be done because many have already deferred rent payments, mortgage, or car payments even, and the amount that would need to be paid in 2021 could be significant.
If you have questions regarding this, please give our office a call (310) 534-5577, or our email email@example.com. I hope you found this interesting and that it helped you understand what the meaning of deferral really is.