That payroll tax holiday, that you probably aren’t getting, technically went into effect Tuesday. A lot of employers aren’t participating — at least not yet — in this Trump administration economic relief approach.
But what choice do employees have on whether or not they keep about 6% more of their paychecks? That’s the tax money that normally goes to fund Social Security.
Marketplace’s Nova Safo has more on this. He spoke with “Marketplace Morning Report” host David Brancaccio, and the following is an edited transcript of their conversation.
David Brancaccio: Nova, one reason I ask is because employees, as it currently stands, will be on the hook to all this cash back to the government in the spring and may not want a balloon payment hanging over their heads. So do they have a choice in the matter?
Nova Safo: It looks like it’s going to depend on who they work for. That’s because the guidance to implement the tax holiday that’s come from the IRS is addressed to companies. It doesn’t talk about what employees can do.
I spoke with Robert Delgado this morning. He’s an expert on compensation and benefits at the accounting firm KPMG.
Robert Delgado: The notice does not give employees a say in opting in and out of the payroll tax deferral. However, it does provide flexibility for employers to provide that option to employees, and so a lot of employers are looking to put in place an election for employees as part of this process.
Safo: For example, payroll processor ADP, which handles hundreds of thousands of company payrolls, is talking about workers opting in. So there appears to be some mechanism forthcoming, at least for some private sector employees.
Brancaccio: If a company is not participating in the tax deferral, but an employee wants it, do they have any recourse? Can they force their company’s hand?
Safo: It doesn’t look like it. Because there are no penalties for companies that do not participate in the tax holiday. So the private sector is interpreting the whole thing as voluntary. That means employees don’t have a lot of say to force companies to participate, at least not based on the early guidance from the government. More could be forthcoming, and the rules could change.
What’s going on with extra COVID-19 unemployment benefits?
It’s been weeks since President Donald Trump signed an executive memorandum that was supposed to get the federal government back into the business of topping up unemployment benefits, to $400 a week. Few states, however, are currently paying even part of the benefit that the president promised. And, it looks like, in most states, the maximum additional benefit unemployment recipients will be able to get is $300.
What’s the latest on evictions?
For millions of Americans, things are looking grim. Unemployment is high, and pandemic eviction moratoriums have expired in states across the country. And as many people already know, eviction is something that can haunt a person’s life for years. For instance, getting evicted can make it hard to rent again. And that can lead to spiraling poverty.
Which retailers are requiring that people wear masks when shopping? And how are they enforcing those rules?
Walmart, Target, Lowe’s, CVS, Home Depot, Costco — they all have policies that say shoppers are required to wear a mask. When an employee confronts a customer who refuses, the interaction can spin out of control, so many of these retailers are telling their workers to not enforce these mandates. But, just having them will actually get more people to wear masks.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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September 02, 2020 at 08:05PM
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Do employees have a say in whether to go on payroll tax holiday? - Marketplace
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