One thought on “Forbes post, “Worried About The Payroll Tax Deferral? Here’s A Solution To Consider.””
I think this is a valid idea but my only concern is that employees will not be able to get that refund until after they file their tax return and they receive their refund a few weeks later. It all depends on when they get all their tax information in order to file their tax return. I would think most people would receive the refund at the earliest in Mid February which would be 6 weeks after they had to start repaying their fica deferral. It seems that people could do a couple of things if their company decides to participate in the FICA deferral. One would be to have the company directly deposit the 6.2% fica deferral to a separate savings account at their financial institution or transfer it themselves when they get paid. Then do not touch the money. If they think they would spend the money they could have the extra withholding but they should be aware of the delay to receive the refund until after their return is filed and processed by the IRS.
I think this is a valid idea but my only concern is that employees will not be able to get that refund until after they file their tax return and they receive their refund a few weeks later. It all depends on when they get all their tax information in order to file their tax return. I would think most people would receive the refund at the earliest in Mid February which would be 6 weeks after they had to start repaying their fica deferral. It seems that people could do a couple of things if their company decides to participate in the FICA deferral. One would be to have the company directly deposit the 6.2% fica deferral to a separate savings account at their financial institution or transfer it themselves when they get paid. Then do not touch the money. If they think they would spend the money they could have the extra withholding but they should be aware of the delay to receive the refund until after their return is filed and processed by the IRS.