President Trump’s plan to have businesses defer the employee’s share of payroll taxes is not going smoothly. The logistical difficulties are significant, and businesses have been expressing their frustration to the Treasury Department, reports The Wall Street Journal (subscription).
The problem: Employers are worried about the administrative burden. Plus, they’re concerned they may be liable for the taxes of employees who have changed jobs. And lastly, if Congress refuses to forgive the taxes, companies will be on the hook for a huge tax bill next year.
While companies await guidance on how to implement the President’s executive order, Treasury Secretary Steve Mnuchin said in an interview on Wednesday that he can’t force firms to stop withholding those taxes. Some tax experts say that companies will be disinclined to take the chance.
NAM involvement: In remarks yesterday to NAM members, IRS Commissioner Chuck Rettig urged companies to continue weighing in with policymakers.