Even though the president signed an order a few weeks ago allowing employers to stop withholding the 6.2% Social Security payroll tax from their employees’ paychecks, most still haven’t adopted the policy. There are too many unanswered questions.
The deferral is just that: a deferral. The tax is still due by April 30, 2021.
If employers don’t withhold it from the employee’s check and hold it for them, how will it be paid? Will it be deducted from any refund expected at tax time? If that is the case, what about those people that usually owe? Will it just be added to the balance due?
Check out this Associated Press article for more on this subject: http://ow.ly/Qfs130r8l03
It doesn’t seem like there is any benefit to the employer to participate, and not knowing all the possible ways it could come back to haunt them is certainly reason enough to be concerned.