I think employers are worried that they’ll have to cut a check to the government later on. This move is essentially telling people “Vote Trump or you likely won’t get a fat check”
Payroll tax guy. This is exactly it. It's just a deferral. Employers are on the hook for paying back any underwithheld tax in 2021.
If you have a bunch of minimum wage employees, turnover is probably sky high anyway. Companies would be left holding the bag on all that uncollected tax. Even if someone wants to stick around, why would they want to pay 12.4% in 2021 to pay it all back when they can just skip out and work for a different employer?
I think employers are worried that they’ll have to cut a check to the government later on. This move is essentially telling people “Vote Trump or you likely won’t get a fat check”
Genius move.
Payroll tax guy. This is exactly it. It's just a deferral. Employers are on the hook for paying back any underwithheld tax in 2021.
If you have a bunch of minimum wage employees, turnover is probably sky high anyway. Companies would be left holding the bag on all that uncollected tax. Even if someone wants to stick around, why would they want to pay 12.4% in 2021 to pay it all back when they can just skip out and work for a different employer?