Little bit of a PSA. I know there were some questions asked about this back when Trump signed the executive order and there wasnt clear answers. I was just getting ready to work on payroll for the town I work for so I emailed the CPA that works on our budget/audit to see exactly when that took place and how it works. For those that want to take the payroll tax holiday, know that it is actually just a FICA deferment until January. It took effect on September 1st. If you elect to take the "holiday", they will not hold out the 6.2% for the rest of the year. But starting in January when folks are a little tight on money after Christmas, they will double the FICA tax they hold out until you have paid back what you deferred. So if you take it just know that starting in January they will be holding out 13.85% until you have paid it back.
Edited to say it is actually up to the employer more than the employee if they decide to take the holiday because if an employee decides to defer the 6.2% and then quits their job and goes to another (I know that will all depend on what the January job market looks like) job, then it is the employers responsibility to pay back the deferred amount.
Edited to say it is actually up to the employer more than the employee if they decide to take the holiday because if an employee decides to defer the 6.2% and then quits their job and goes to another (I know that will all depend on what the January job market looks like) job, then it is the employers responsibility to pay back the deferred amount.
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