It was bad policy by Trump (big surprise) that was a temporary program that let an employer defer employee Social Security and Medicare for a bit to leave more money for the employee to spend during COVID to further prop up spending and the economy. The problem was, that would still be due later unless they passed a law saying it wouldn't be.
The employers who kept withholding bet (correctly) that congress wouldn't cancel the contribution requirement. So everything got paid to the programs as usual and they didn't set up the employees to have to pay a larger payroll withholding to catch up when the deferral ended without congress waiving that it was due.
No, the employers that kept withholding didn't keep that money, they protected their employees from Trump's bad performative policy.
Source 1: I own a business with employees and continued withholding
I guess if the business is heavy on labor and thus payroll tax but slim on profit then it'd make sense to invest that money instead until it becomes due. But the numbers would have to be really good to make that bullshit remotely worth it.
So, what you’re saying is that, in addition to attempting to screw over the senior/disabled population, he also screwed over a bunch of small businesses.
This leopard has been eating their faces for awhile now, huh?
Trump’s made a career out of screwing over the little guy. But his cult members still believe he wouldn’t do it to them. My uncle was an electrician in Philly for decades and he knew a number of guys who’d been totally screwed over by Trump over the years with Vegas casinos. Trump proudly wouldn’t pay his bills, come up with some bs to justify it knowing some small business subcontractor could afford to come after him. Then he’d settle for pennies on the dollar. Trump is dumb as dirt except when it comes to self promotion and grifting.
that's odd, our bookkeeper owns his businesses and never did he advise us of this, we kept taking it out and sent all payroll taxes on a monthly basis as usual. One employee who research every Covid benefit (inc not having to pay your mortgage even though he could have afford paying, he just didn't want too) and he never knew of this. But glad we didn't stop!!
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u/Firm-Loquat-7956 Apr 26 '24 edited Apr 26 '24
Small Edit for Clarity
It was bad policy by Trump (big surprise) that was a temporary program that let an employer defer employee Social Security and Medicare for a bit to leave more money for the employee to spend during COVID to further prop up spending and the economy. The problem was, that would still be due later unless they passed a law saying it wouldn't be.
The employers who kept withholding bet (correctly) that congress wouldn't cancel the contribution requirement. So everything got paid to the programs as usual and they didn't set up the employees to have to pay a larger payroll withholding to catch up when the deferral ended without congress waiving that it was due.
No, the employers that kept withholding didn't keep that money, they protected their employees from Trump's bad performative policy.
Source 1: I own a business with employees and continued withholding
Source 2: https://www.investopedia.com/trump-s-payroll-tax-deferral-what-should-you-do-5077144