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Confusion on the Payroll Tax Issue Continues
In a post on ocregister.com, Bloomberg reporters Laura Davison and Allyson Versprille take a look at the continuing discussions regarding President Trump’s two-week-old executive order on deferral of payroll taxes, noting that the absence of definitive guidance from the Internal Revenue Service (IRS) on exactly how to do handle the deferral. Their article explains that, “Large employers including Walmart, Macy’s and Procter & Gamble Co. have said they need more details from the IRS. They didn’t immediately respond to a request to comment on whether they would implement the deferral if the IRS didn’t issue any rules by the Sept. 1 start date. The U.S. Office of Personnel Management didn’t respond to a question about whether it plans to defer taxes for federal employees.” The absence of IRS guidance is problematic for employers, the article points out, “The onus is now on employers to provide explanations to their workers about why the company isn’t implementing the deferral and they should prepare to face a potential backlash from employees.” Read the Bloomberg article here…