Agencies can’t pass laws, but agencies pass rules. They will establish a new Treasury agency rule that suspends the collection mechanism, and guidance will go out to satellite offices and industry associations to recommend accountants adjust their tax guidance to their customers. Software companies like Intuit will adjust their code to recalculate deductions after they have some time, and that will be it.
That’s exactly what happened after the CARES act passed. About a month into it, options appeared in QuickBooks payroll to add PTO options to staff for the three options for expanded leave, and the payroll tax reports automatically deduct the tax credit for your payments out to the Treasury.
That’s the part of the final rule we will have to see. Laws are written but rules set processes on how to apply them. We will see where this lands. They could set it to be paid back spread over multiple years for all we know right now.
Agencies can’t pass laws, but agencies pass rules. They will establish a new Treasury agency rule that suspends the collection mechanism, and guidance will go out to satellite offices and industry associations to recommend accountants adjust their tax guidance to their customers. Software companies like Intuit will adjust their code to recalculate deductions after they have some time, and that will be it.
That’s exactly what happened after the CARES act passed. About a month into it, options appeared in QuickBooks payroll to add PTO options to staff for the three options for expanded leave, and the payroll tax reports automatically deduct the tax credit for your payments out to the Treasury.
Right so he’s directing that the taxes not be collected. But don’t the citizens still owe them?
That’s the part of the final rule we will have to see. Laws are written but rules set processes on how to apply them. We will see where this lands. They could set it to be paid back spread over multiple years for all we know right now.