Still no guidance from the IRS about the payroll tax “holiday” (deferral), so it’s extremely unlikely that your employer will be ready — simply because the major payroll companies (Paychex, ADP, Gusto, and many others) don’t have the answers to many questions.
Implementing these kinds of “optional” changes is hard. For example, payroll companies would have to recalculate the payroll tax in the middle of a quarter and set it up to apply to some employers and some workers — but not others.
All of this means you might not see any savings on your paycheck from this in early September. If it were a “suspension” of the payroll tax (and not a deferral), things would be much simpler… but the President can’t do that at the stroke of a pen — that’s a Congressional matter (separation of powers, and whatnot).
So, as I recently advised: keep your powder dry and don’t look to this very much as a financial help.
In fact, it’s a good principle: if you’re reading this, that means that you almost certainly have specific, tangible advantages over many billions of people around the globe.
Rather than looking to outside forces to save your financial bacon, what can you do THIS WEEK to find more financial margin? Are there expenses you can cut, additional revenue streams to add (a second/third/fourth job, selling things around the house, etc.), other resources you can tap?
And I know… for some, these are unrealistic options for many possible reasons. These are not easy times.
But regardless, we have a choice: we can take positive action today to do something about it for ourselves and our family.
What’s it going to be for you?
You can’t control outside factors, but you CAN control your tax and financial strategy… and we can help.
To your family’s lasting financial and emotional peace…
You’ve got us in your corner.
Sheri L. Hoble