Should Your Employees Take Advantage of the Payroll Tax Holiday?

President Trump recently signed an Executive Order calling for a payroll tax holiday on the employees portion of the payroll tax starting on September 1.  While this 4-month reprieve might sound enticing to your employees, we discourage all our business clients from changing employee withholdings.  While we have many concerns, the main one is that this Order provides for only deferral,  not forgiveness.  Without further action from the Government, your employees will get stuck with a large tax bill and have to repay that money with their taxes in 2021.  We would suggest you continue withholding payroll taxes from your employees as required by law before this Executive Order.