Today is the first day of the payroll tax deferral. Here’s what we know (Formula for chaos and endangering Social Security, Medicare and Medicaid)

  • Recent guidance from the IRS doesn’t explicitly say that employers must participate. Companies that do may give employees the choice of opting into the deferral, but it will depend on the employer, payroll experts say.
  • Employees who participate in the deferral will see a short-term increase in pay. But remember — they will face “double withholding” in the first four months of 2021, so their take-home pay will go down during that period.

Source: Today is the first day of the payroll tax deferral. Here’s what we know