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

[amy1115]

I work in payroll and we sent an email out to all employees last week letting them know that we will not be participating. Agree with everyone else that this is just a potential mess both for employees and employers.

 

[nene0182]

I haven’t heard anything from my company and neither has my husband. I’m hoping they choose not to participate and if they do we have the option to opt out.

 

[Kestryl]

My employer hasn’t said one way or another, but I doubt they’ll take up the “holiday.” For one, they won’t want to take the time to change the system. For another, they are very cautious. They won’t want to deal with collecting from an employee who leaves during or after the holiday.

 

[mrp4352]

I asked my employer and was told that we were not participating because of the complexities it would cause in our Payroll systems. There's not been an official word sent out to everyone, though.

 

[shystalips]

Whoever thought of this terrible idea?

 

[havaneselover]

Whoever thought of this terrible idea?

Probably don’t want to go there.

 

[loves to dive]

We didn't participate either. Right now it's just my boss and me and he sent me an email before I ran payroll to not do it. I didn't tell him but I wasn't planning on doing it anyway.

 

[RamblingMad]

We’re not doing it. We don’t want to get into the tax collection business.

 

[easyas123]

We’re not doing it. We don’t want to get into the tax collection business.

Exactly.

 

[tvguy]

My company announced yesterday that they are not taking part.

 

[Soben]

We haven't gotten any communication, but my paycheck hasn't changed. I wouldn't want to keep track and have to pay it back after the holidays and everything. Between Christmas and tuition payments due in January, I'd really rather not.

 

[beck02]

I work for the federal government, and yesterday we were told all are doing it (civilian & military) and cannot opt out.

I can't begin to state how I feel about not being allowed to opt out of this stupid crazy plan....

 

[Befferk]

I own a bookkeeping business and run a lot of payroll for companies. I have advised NO ONE do this. It's a huge risk for the employer, because if they do this and the employee leaves before it's paid back, the employer is on the hook for paying that amount back in. Not to mention it's a mess for employees that many times don't understand their payroll taxes anyway. If it was for sure going to be forgiven instead, then that's different.

 

[runwad]

The way I understand it in January they will withhold 12.4% of your pay for 4 mos to make up the 6.2% they are forgoing now thru Dec.31st.

So, your pay may be 6.2% more now, but it will be 12.4% short(to pay back the 6.2% you get now+ what is normally withheld) come January.

Plan accordingly if this is going to affect you.

 

[DisMommyTX]

I work for the federal government, and yesterday we were told all are doing it (civilian & military) and cannot opt out.

I can't begin to state how I feel about not being allowed to opt out of this stupid crazy plan....

DH was informed that his pay will be affected as well. Don't know yet about mine for sure (I never know my pay until I get the Oct check ), but it's likely as I work for a public university. No way for either of us to opt out. I absolutely hate that they are doing this, but maybe I can spin it to our advantage. Like, send the full 12% directly to one of our savings accounts for the rest of the year. It should only feel like a 6% cut in salary, but knowing we are getting twice that in savings would be a nice boost. Then, next spring we won't feel it at all (at least until DD turns 16 in Feb and our insurance skyrockets.

 

[KimPittPA]

My 53,000 plus employee company is electing NOT to participate. Feel for the federal employees who have had it made mandatory.

 

[Befferk]

If I were forced into it, I would just take that same amount that I'm getting "extra" now and put it into savings, then you have it when they start taking more to pay it back.

 

[wendow]

Not sure what my dh's company will be doing but if they actually allow it and we get the extra money, we will be happy to put it away, earn interest on it and then pay back if we need to. Is that not a viable option for others...?

 

[havaneselover]

Not sure what my dh's company will be doing but if they actually allow it and we get the extra money, we will be happy to put it away, earn interest on it and then pay back if we need to. Is that not a viable option for others...?

Certainly but interest rates are super low so you probably won't earn much, the point of this was to stimulate the economy but if you have to repay it and it is just sitting in savings accounts then why bother, and unfortunately not everyone is disciplined about their finances or financially literate (particularly younger and lower income workers) and some people will spend this money and when they have to repay it in 2021 they will likely be in a jam.

 

[jerseygal]

If this was forgiveness this would be great, otherwise not a good idea!