President Donald Trump's payroll tax holiday is due to take effect on Sept. 1. Participating employers can expect heftier responsibilities, while workers who partake in the holiday may see a temporary pay boost this fall -- and a dip next January.
Employers may also "make arrangements" to collect the taxes from the employee, according to the guidance.
"The big issue, the surprise is that employers are going to be completely responsible for all the repayments, so they get all the responsibility for retaining the deferrals," said Pete Isberg, vice president of government affairs at ADP. That's because not only will employers have to pay back the deferred taxes from this fall by April 30, but they also must start applying the payroll tax as per usual next January.
"This is a holiday in which the work continues to pile up on your desk when you're gone, and you take care of it when you come back," said Robert Delgado, principal at KPMG in San Diego.Questions also remain for seasonal employees and other workers who may part company with their employers by year end.
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