Was last year’s payroll tax deferral taken up by many employers?
The Trump administration’s optional “holiday” for Social Security tax payments last fall was not widely embraced by employers outside the federal government. The measure let employers defer collecting employees’ share of the taxes for the last four months of 2020.
In September, Forbes reported that uncertainty about administering the plan led most private employers, including UPS, Costco, General Motors and many others, to opt out. The House of Representatives declined to go along for its staff, but the administration did opt all executive branch and active military employees in.
With Trump’s defeat, talk of making cuts permanent or forgiving the 2020 taxes faded. Congress did extend the payment deadline for employers from April 30 to the end of 2021. The Treasury began notifying Trump appointees who have left their jobs to repay any 2020 taxes due within 30 days.