loader image

World
970,080
COVID-19 Fatalities
Updated on Sep 22, 2020 6:28 am
USA
204,515
COVID-19 Fatalities
Updated on Sep 22, 2020 6:28 am
Tuesday, September 22, 2020
74.3 F
McAllen

Businesses Need Clarity on Payroll Tax Deferral

Most Read

Weslaco EDC and the City of Weslaco has developed a ROUND TWO COVID-19 Program

In response to the adverse economic impacts of the COVID-19 pandemic, the Economic Development Corporation of Weslaco (EDC) and the City of Weslaco has developed a ROUND TWO (2) COVID-19 Weslaco Small Business Recovery Assistance Loan/Grant Program to provide assistance to Weslaco-based businesses suffering from financial impacts related to the COVID-19 (Coronavirus) pandemic.

Women of Distinction 2020

The RGV Hispanic Chamber of Commerce Women's committee proudly announces the recipients of the 2020 Women of Distinction Award.

Funding for A New Federal Court Building Now A Reality

In 1988, the McAllen office of the United States Attorney's Office in the Southern District of Texas opened by leasing an eleven-floor all-black facility located on old Business Highway 83 and Bicentennial. The building was originally the site of the Texas Commerce Bank.

Bonnie Gonzalez, a Professional That Cares

It is reassuring to know that someone and a board of directors work diligently to better the health of the Rio Grande Valley residents.

Texas and Mexico’s Oil and Gas Industry gather virtually for the 6th Mexico Gas Summit on September 8-10, 2020

To learn about the evolving oil and gas industry landscape in Mexico, business executives can participate in the upcoming the 6th MEXICO GAS SUMMIT 2020 (www.mexicogassummit.com) which will take place virtually this year from San Antonio, Texas on September 8,9 and 10.
- Advertisement -
Image for illustration purposes only
- Advertisement -

Texas Border Business

The Trump administration’s good-intentioned move to defer payroll taxes needs more clarity, stated the U.S. Chamber in a letter sent to the Treasury Department yesterday.

What’s happened? Last weekend, President Trump signed an Executive Order temporarily delaying Social Security taxes paid by workers starting September 1 and running to the end of the year.

This has created many questions, as noted in a letter the U.S. Chamber sent to the Treasury Department.

What are some of the concerns? One is that as reports indicate, if the deferral is optional who decides to defer, the employer or the employee? Also, “there is uncertainty as to who is ultimately liable for the repayment of the deferred taxes, and when the repayment will be due and what mechanism will be used to collect that repayment.”

Anything else? Questions arise about how to apply this in other situations, such as

  • Employees who have fluctuating salaries or receive bonuses
  • Short-term employees like seasonal workers
  • Employees who leave their job before the end of the deferral period

Why it matters: Until these questions are answered, businesses and employees face considerable uncertainty. It “exacerbates the challenges faced by payroll processors and compliance departments who are already struggling to implement this EO in an extremely short period of time,” the letter states. 

- Advertisement -

In addition, because it’s a deferral “without Congressional action to forgive the payroll tax, it threatens to impose serious hardships on employees who will face a large tax bill at the end of the deferral period.”

Our take: “There remains widespread uncertainty on how businesses will implement and apply the Executive Order, and as American employers, workers and families work to navigate the COVID-19 crisis they need clarity, not more confusion,” said U.S. Chamber Executive Vice President and Chief Policy Officer Neil Bradley in a statement. “We urge the Treasury Department to issue clear guidance for implementing this payroll tax Executive Order.”

- Advertisement -
- Advertisement -
- Advertisement -

Latest News

AMA: Congress Providing Much-Needed Relief to Physicians Working Through the Pandemic

The American Medical Association (AMA) strongly supports provisions in the Continuing Resolution that will offer relief to hard-pressed physician practices.

Multiple Smuggling Events Lead to 60 Apprehensions

Over the weekend, Border Patrol agents thwarted three smuggling cases that led to the rescue of two aliens confined in a vehicle compartment, and the discovery of two human smuggling stash houses.

National Voter Registration is TOMORROW

In celebration of National Voter Registration Day, the Hidalgo County Elections Department will extend its regular business hours and will be open until 8 p.m. Tuesday, Sept. 22, 2020.

Toros Postpone Matchup with New Mexico

Rio Grande Valley FC and New Mexico have collaboratively decided to postpone the match between both clubs that was previously scheduled for Wednesday, September 23.

Vaqueros United: UTRGV Athletics Stands Against Racism, Hatred and Social Injustice

Vaqueros United: UTRGV Athletics Stands Against Racism, Hatred and Social Injustice

More Articles Like This

- Advertisement -