Level 11

Question

Payroll Tax Cut

Forum|Forum|5 years ago
August 31, 2020
15 replies
64 views

Non-ProSeries question - the payroll tax cut taking effect tomorrow (Sept 1st). Cannot find any info if it is mandatory, if any of the payroll softwares are up-to-date, etc. Does anyone have real answers as payrolls are now due?

ProSeries Professional

This topic has been closed for replies.

T

Terry53029

Intuit Community Champion

Here is link for official notice: https://www.irs.gov/pub/irs-drop/n-20-65.pdf

dascpaAuthor

Level 11

I got that link, thanks. But it doesn't tell us if it is mandatory, and I was just told by my ADP rep that they're still working it out with the IRS. So far ADP, Paychex, Intuit Payroll, etc. are not up to date and there are payrolls to be processed for tomorrow and beyond.

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Terry53029

Intuit Community Champion

The way I read it I believe it is mandatory, as it states the employer is to withhold the taxes that weren't withheld in first quarter 2021. It also says the employer can take other steps to collect from employee, and that probably means the employee isn't working there any longer. Just an opinion, but there is a phone number to call in the notice if it effects you. I also think if the employer did not comply, some employees would be upset.

BobKamman

Level 15

Most of us on this planet know that it is voluntary, not mandatory, and being ignored by most employers.

dascpaAuthor

Level 11

"Most of us on this planet...." Your comment reeks of "attitude" that I am ignorant for asking a question that even seasoned champions on this board as well as ADP, Paychex and Intuit Payroll personnel do not have the definitive answer to. Please limit your response to a technical answer, not a demeaning one. I'm sorry if I'm just not as smart as you are.

abctax55

Level 15

Here's a good link on the confusing subject:

https://www.currentfederaltaxdevelopments.com/blog/2020/8/28/guidance-issued-on-deferral-of-employee-oasdi-withholding-set-to-begin-on-september-1

HumanKind... Be Both

George4Tacks

Level 15

I really like Spidell. They send out info very quickly, so signing up for their free alerts is definitely worth the no cost. https://www.caltax.com/get-more-from-spidell/

https://www.caltax.com/news/flash-email/2020-57-employee-payroll-tax-deferrals-are-a-messy-proposition/

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