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Thanks, but no: Small businesses shun payroll tax deferral

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Posted at 9:28 PM, Sep 05, 2020
and last updated 2020-09-06 00:28:18-04

NEW YORK (AP) — As employees of small businesses get their first September paychecks, they’re probably receiving their usual amount.

Company owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred.

The order President Donald Trump signed Aug. 8 allows employers to stop withholding the 6.2% tax from Sept. 1 through Dec. 31 and requires that it be paid between Jan. 1 and April 30 of next year.

But business owners are wary, saying the plan opens up the possibility that companies might ultimately have to pay the tax if staffers leave.