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originally posted by: Middleoftheroad
If you’re worried, just have your employer withhold that money from your paycheck. It was and still is an option for employees, even before this EO.
originally posted by: Phage
a reply to: Brotherman
Sort of. Except for the part about "tax time." It is up to the employer to start making up the difference by withholding more from your paycheck beginning January.
The "guidance" is silent about an employee's options.
Who is this supposed to benefit?
An employee has to choose to have this tax deferred- and a company can not make that decision for their employees.
If necessary, the Affected Taxpayer may make arrangements to otherwise collect the total Applicable Taxes from the employee.
And he won't have another election to worry about.
Trump put out a memorandum promising to have this payroll tax forgiven (so nobody owes it back) if he's elected and serves again- however it still has to pass through congress.
The IRS got around to issuing “guidance” on the president’s order regarding deferral of Payment of Social Security and Medicare taxes.
As of next payday, we can stop withholding from paychecks (a total of 7.65% of wages) through the end of the year. However, beginning January 1, we will be required to start making up for the deferral by April 30, presumably by bumping the withholding amounts.
Employees may be expecting more money in their paychecks, but I don’t think that this is a really good idea for them or a company. If any employee is lost before the deferral is covered the company may be on the hook for the amount due.
And in typical IRS fashion, it wouldn't surprise me a bit if they also penalized people for not having enough taxes taken out during this period.
An Affected Taxpayer deferred under this notice must withhold and pay the total Applicable Taxes that the Affected Taxpayer deferred under this notice ratably paid between January 1, 2021 and April 30, 2021 or interest, penalties, and additions to tax will begin to accrue on May 1, 2021, with respect to any unpaid Applicable Taxes.