President Signs EOs with Stimulus Package on HoldAugust 12, 2020
Over the weekend, President Donald Trump issued a series of Executive Orders (EOs) focused on providing ongoing pandemic relief. Among those provisions is one that would implement a temporary deferral of the payroll tax through Dec. 31, 2020. The EO appears to allow employers to hold off on collecting the employee portion of the payroll tax for the remainder of the year when all those taxes would then become due.
NSBA President Todd McCracken called for greater clarity on EO, stating that, “While I applaud the administration’s efforts to provide relief to small businesses—and payroll tax relief can be a very meaningful way to do just that, particularly in labor-heavy and lower-income industries—this EO lacks the details necessary to determine how helpful it really will be.”
The EOs were issued in absence of a broad stimulus agreement from Congress after talks broke down last week. Negotiations between House Speaker Nancy Pelosi (D-Calif.), Senate Minority Leader Chuck Schumer (D-N.Y.), White House Chief of Staff Mark Meadows and Treasury Secretary Steve Mnuchin have not yet resumed despite both chambers both technically remaining in session during the usual August recess.
NSBA has urged the inclusion of pro-small-business policies including language from Senate Small Business Chairman Marco Rubio (R-Fla.) and Sen. Susan Collins (R-Maine) which would keep the PPP loan program open through the end of the year, allow borrowers to apply for a second round of loans and make available a new long-term loan option to help businesses weather the COVID-19 crisis.
Click here to contact your lawmakers on the stimulus package.
For more from NSBA on the Payroll Tax EO and what it could mean for your small business, please click here.