Skip to Main Content

Trump’s Memorandum Leaves Employers In The Dark

    • Employers questioning the logistics of payroll tax deferral memorandum
    • What is Congress doing to provide relief for struggling businesses?
    • Will full forgiveness be granted before the end of the year?

Trump’s August 8th memorandums and order addressed the looming stress behind the pending stimulus legislation from Congress. The three executive memorandums and one executive order helped to tie up a few loose ends concerning the approaching CARES Act deadlines.

But how does the payroll tax deferral affect employers? It defers taxes on payroll wages earned in 2020, but it does not grant full forgiveness. Legislators on both ends of the spectrum agree that the deferral is not enough: it provides a gradual benefit over time but not the immediate relief employers and employees need right now.

Trump’s hesitation to grant full forgiveness over payroll tax results from notions of his executive power limitations by Congress. Currently, the U.S. Treasury is working to settle concerns regarding logistics of the memorandum for 2021, for example: will employees receive a double withdrawal from paychecks in 2021? The pressure has been put on Congress to enact forgiveness or provide a similar form of relief before the end of the year.

Check out our DSJ COVID-19 Information Center or call our offices at (516) 541-6549 to speak to our Coronavirus Response Team to stay current!

Sincerely,

Devin McQuillan
Associate, Creative Solutions

Contact:
516-541-6549 | Email

 
This entry was posted in COVID-19 News, News & Articles. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed.