This week, the American Society of Association Executives (ASAE) joined the U.S. Chamber of Commerce and more than 30 other associations in a letter urging congressional leaders and Treasury Secretary Steven Mnuchin to enact tax relief for American families that does not rely on a payroll tax deferment.
President Donald Trump issued an executive order this month that allows employers to defer employee payroll taxes from Sept. 1 through the end of December. However, ASAE and the other co-signers of the chamber’s letter said the directive is “unworkable” for most employers and creates a substantial tax liability for employees at the end of the year. Mnuchin has said the order is optional for companies and other employers to implement.
According to an income analysis chart prepared by the chamber, an employee making $75,000 per year would owe more than $1,600 in deferred payroll taxes at the beginning of next year.
“Many of our members consider it unfair to employees to make a decision that would force a big tax bill on them next year,” the letter reads. “It would also be unworkable to implement a system where employees make this decision. Therefore, many of our members will likely decline to implement deferral, choosing instead to continue to withhold and remit to the government the payroll taxes required by law.”
This article was provided to OSAE by the Power of A and ASAE's Inroads.