Home HR & Payroll Optional payroll tax deferral creates more confusion than it’s worth

Optional payroll tax deferral creates more confusion than it’s worth

by The 100 Companies
Optional payroll tax deferral

The executive order allowing employees to defer their OASDI (SSS) taxes was effective on Sept. 1. Employers are not required to offer this; it is optional.

We recommend that employers NOT opt in right now. Employees likely won’t understand that they will have to repay these taxes in Q1 2021. There is also not a good plan in the rules for how to recover these taxes if an employee leaves your company before they are fully repaid.

If the ruling changes to a waiver of the taxes, you can make it an option at that time. Until then, carry on as usual.

– Molly Eyerman, Founder + CEO, VIVO Growth Partners

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