Economics
Employers Face Payroll Tax Dilemma After Trump Delays Due Date
- Workers could be stuck with tax bill as high as $2,232
- Lawyer advises companies continue to withhold payroll taxes
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President Donald Trump’s order to delay collection of payroll taxes thrusts a dilemma on U.S. companies: continue withholding the money from workers expecting bigger paychecks or pass it on and potentially put themselves or their employees at risk of a big end-of-year bill from the IRS.
Trump signed an order over the weekend deferring the due date for payroll taxes, which employers deduct from paychecks and submit to the IRS on behalf of workers. The order just defers the taxes from Sept. 1 to the end of the December. The bill will come due unless Congress agrees to forgive the tax debts.