President Donald Trump signed an order deferring the due date for payroll taxes from Sept. 1 to the end of December for those earning less than $4,000 biweekly. The order leaves companies with limited time to figure out what their legal responsibility is and potentially reprogram payroll systems to accommodate the changes. One tax lawyer warns that employers should be cautious because the Internal Revenue Service (IRS) could go after both a company and its employees if they don’t pay the taxes when the executive order expires. Pete Isberg of Automatic Data Processing said that it is also difficult for many employers to reprogram their payroll systems. Employers hope further guidance from the Treasury Department will clarify whether they will have to pay when the taxes come due or if the cost shifts to employees. Isberg said the taxes could amount to up to $2,232 per person, which could be problematic for taxpayers who aren’t used to paying their own payroll taxes directly. Matt Foreman, an independent tax lawyer based in New York, said that late payments would be subject to interest and penalties. “My advice is keep collecting and keep remitting to the IRS. Tell your employees exactly what (you’re) doing, and why you’re doing it,” he said.
Read the full article on chicagotribune.com.