As Trump’s Payroll Tax Holiday Kicks In, Here’s What Employers and Employees Need to Know
Christopher Moran, a partner in Troutman Pepper’s Labor and Employment Practice Group, was quoted in an August 31, 2020 Fortune article titled, “ As Trump’s Payroll Tax Holiday Kicks In, Here’s What Employers and Employees Need to Know.”
Ultimately, those like Christopher Moran, an attorney in the labor and employment practice group at Troutman Pepper, say employers need to consider if the benefits outweigh the risks: "Every little bit [for your employees] helps, I know, but is that significant enough to opt in to this administrative scheme?"
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"You are sort of gambling that it’s converted from a deferral to a forgiveness," notes Moran.
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While the IRS guidance notes employers are able to "make arrangements" with employees about paying back taxes, those like Moran are not optimistic these agreements will turn out well for the person paying the check. That arrangement might look something like paying a lump sum, Shevchuck suggests, but Moran argues "in my experience, arrangements to collect money from employees who have departed are inherently problematic."
The bottom line, experts say, is that employers need to weigh the pros and cons of opting in. For Moran, that might mean looking at the salaries of your workforce and who would actually benefit (in other words, who makes $104,000 per year and under), and whether or not your business is in an industry that historically has high employee turnover—If that's the case, "you’re going to have problems," he suggests.