Payroll Tax Deferment

[RevLogRaven]

Is this anything that the employees need to worry about? Is it an opt-in type of situation? I honestly am very confused about it and have read that employees in general (not Target specific) will need to pay back these taxes. Is Target even taking part in this? Is this something that just falls on the employers? I want to find out because I need to know if I should be putting money aside so I can pay those taxes if I need to next year.

 

[jackandcat]

POTUS' Executive Order was just signed a couple of days ago. Target has not yet had an opportunity to review this topic. Reportedly there will be legal challenges. The concept of "deferment", where the "deferred" payroll taxes are still owed to Uncle Sam and are due for collection at the end of this year, rather than on a pay-as-you-go basis via payroll withholding, is extremely concerning.

 

[dabug]

Trump orders extended jobless benefits, payroll tax deferral - https://www.accountingtoday.com/articles/trump-orders-extended-jobless-benefits-payroll-tax-deferral

Nothing I have found has said it's optional for anyone, but maybe I overlooked something? I have read articles saying employees would have to pay that 6-7% back, as well as articles saying they won't. Although, it's technically a deferment.. So going by the name of it, I think employees and employers would have to pay that money back. Nobody in their right mind would believe the entire working population would just keep their word and pay back that money, right?

 

[Hardlinesmaster]

When in doubt, save some dollars for it. I am.

 

[buliSBI]

Without getting political,
more than likely payroll taxes would come due with your income taxes. Or tax bills would come in the mail later in the year.

 

[BoxCutter]

Putting aside the Constitutionality of Trump being able to do this through an Executive Order, I think (and hope) you can opt to continue to pay the tax. Even if you can, I doubt most of working people will do so. A huge tax bill will then come due that people won't be able to pay. If Trump is re-elected, look for a deal to be offered. The deferred tax will be forgiven in exchange for giving up the Payroll Tax permanently. Then say good-bye to Social Security and Medicare forever.

 

[RevLogRaven]

I asked my ETL-HR about it and they said it was too soon to know how Target will be dealing with this. But they were not happy about the whole thing and said that hopefully Target will come up with a way that we can opt-out of doing this.

 

[Dcnewb4now]

It’s all smoke and mirrors like the big “tax break” we got a couple years ago. My check was the same when we supposedly got a break. Here, sure you get that money now, but you have to pay that back come tax time. If you want, look at your check now and see about what is being taken out for the payroll tax portion and fill out a new w4 and put that amount in the 4(c) box (additional withholding)

 

[Ringwraith917]

Whatever Target decides we will have to go with. A lot of people are saying it will be forgiven if it isn't paid (which would require another exec action or bill to be passed). As it is, it would still come due at the end of deferment. If you notice your "employee taxes withheld" portion of your check suddenly drop, I suggest start saving the difference

 

[Planosss]

I asked my ETL-HR about it and they said it was too soon to know how Target will be dealing with this. But they were not happy about the whole thing and said that hopefully Target will come up with a way that we can opt-out of doing this.

Target will wait to see what Walmart does and then make a dishizun.,

 

[jackandcat]

I imagine Corporate needs time to figure this out, from the rather vague wording of the EO. Tax deferral is very different than the Great Recession temporary payroll tax cut enacted by Congress in 2009. That 2009 payroll tax cut, which ended in 2011, maintained FICA withholding but at a lower tax rate.

Let's discuss the politics of this in on the Off-the-Clock board.