As many know, in March of 2020, the Coronavirus, Aid, Relief, and Economic Security Act, commonly known as the CARES Act, was signed into law by President Trump. As a part of this Act, employers received the opportunity to defer a portion of their payroll tax payments and pass that money on to their employees in order to put more money into their pockets and stimulate the economy. Unfortunately, this tax delay, which is supposed to run from September 1st until the end of 2020, left workers and their employers with plenty of unanswered questions.
What Are Payroll Taxes?
In order to understand how the payroll tax deferral works, you first need to understand the basics of payroll taxes in general. These are the taxes that your employer submits to the governor. The money is taken from your paycheck and sent to the Federal Government on a regular basis, sometimes twice a month, even though it’s deducted from you whenever you get paid.