It comes as no surprise that the latest offering by POTUS Donald Trump to kickstart the economy fails to excite small and medium business owners. Employers were directed to allow workers to defer paying their portion of payroll taxes 9/1/2020 until the end of the year. Response has been an overwhelming “no thanks.”
Why would anyone defer payroll taxes to get hit with double taxation during the Jan-April 2021 period?
I was reading the latest issue of Boston Business Journal (BBJ) which posted an ongoing survey question ”Should Employers Opt in to the Trump Administration’s Payroll Tax Deferral?
- 70% NO. It’s too much of a strain on employers and employees to take on if they have to pay it back in full later.
- 21% The administration should offer more clarity on the burden it places on employers and their workers.
- 9% YES, It’s a boost to workers since Congress isn’t moving on pandemic relief.
According to the BBJ article, ConnectPay LLC, a Foxborough-based payroll services company, is reporting that there is most definitely little interest among biz it deals with. And it deals with 4000 clients across the US. How little interest? Not one is deferring payroll taxes!
What about your business in Salem, Peabody, Danvers, and the rest of the North Shore? Is deferring payroll taxes a non-starter issue?