Payroll tax “holiday.” Is your company going to do it? Can you decline?

[floridafam]

Just curious. Haven’t seen DH enough to ask him if there’s been any communication from his company regarding the issue. We are on different schedules right now.

Since it will likely have to be paid back next year, can employees elect not to participate?

 

[MonorailPrincess]

Yes, you can choose not to participate. Not many employers are offering this either, fwiw.

 

[havaneselover]

We are not deferring the taxes. This is a hot mess and we don’t want to worry about getting the money back from employees who quit or are fired.

 

[floridafam]

We are not deferring the taxes. This is a hot mess and we don’t want to worry about getting the money back from employees who quit or are fired.

That’s exactly what I called it. A hot mess.

 

[Shellyred8]

I can't even express how bad of an idea the current plan is!

 

[MonorailPrincess]

I can't even express how bad of an idea the current plan is!

The idea is fine, unfortunately it's not much more than an idea.

 

[clh2]

This was crazy.

 

[tvguy]

Yes, you can choose not to participate. Not many employers are offering this either, fwiw.

This says you can't opt out.

https://www.shrm.org/resourcesandto...irs-guidance-workers-payroll-tax-holiday.aspx

 

[SteveH]

We are not deferring the taxes. This is a hot mess and we don’t want to worry about getting the money back from employees who quit or are fired.

^^This 100x this. We left our team know we'd consider when/if congress approves the actual permanent deferment, but if there is any chance we have to collect it we're not going to offer it. I don't care to try to collect or end up eating it.

Not opposed to the idea, but need to stop putting this on the backs of the employers to implement or risk, we have enough on our plates trying to stay open.

 

[Starport Seven-Five]

I can't even express how bad of an idea the current plan is!

Yep.

In a country where the majority can't come up with $400 to cover an emergency, the idea of people managing their money so they can "repay" this is a huge issue. Q1 2021 is going to be rough.

edit: Just heard from my company that we do not plan to implement this.

 

[easyas123]

but need to stop putting this on the backs of the employers to implement or risk, we have enough on our plates trying to stay open

Agree 100%

 

[tarak]

I've asked whether my office will be deferring the taxes. I really hope not. I've no problem setting aside that extra money, knowing I'll get a shorter paycheck at some point, but I honestly think this is a terrible idea for so many reasons.

 

[easyas123]

We've got just under 40 employees at the moment, we will not be implementing it.

 

[Marionnette]

Payroll tax forgiveness would have been awesome for us but I don’t think the country could afford it. The deferral of payroll taxes does us no good. We have employees who will spend it all not matter how much is in their paychecks. If we had to withhold the deferred taxes from their paychecks next year, they wouldn’t be able to make ends meet. On one hand, we don’t want to act like their big brother. But on the other hand, we would hate to see them struggling. We already cut paychecks early or disburse them weekly for some employees at their request because they can’t manage to budget.

 

[cindyfan]

Agree this whole thing is a hot mess!
Who's to say things will be much better after Jan 1 in order to have to "pay it back"?
And a nightmare for employers!

 

[Chickinvic]

The way they did it in Canada, was offering companies a break on payroll if they could prove their business was down appreciably after Covid. If your business lost a certain percent from prior to Covid, then payroll was covered up to a certain amount. If not (you can't prove your business went down, or your business did not decrease, etc) then you could get a $25,000 reduction in payroll remittances this year. This in no way has to be repaid by employees, etc (the taxes still came off employee cheques). This was more of an incentive to keep staff and keep businesses going.

 

[LilyWDW]

My job will not be doing it. Got the email today. Actually happy about that decision. One less thing I have to worry about.

 

[DisneyLover83]

My employer is not participating and I am glad. It will have to be paid back... may as well pay it now.

 

[easyas123]

My employer is not participating and I am glad. It will have to be paid back... may as well pay it now.

Exactly-

 

[MrsPete]

I'm with the majority -- this is a loan, which will not be useful /will probably cause problems long-term.