Five Things About President Trump’s (Optional) Payroll Tax Deferral This is an employee payroll tax deferral of Social Security taxes starting September 1 through December 31, 2020, for employees making less than $4,000 pre-tax bi-weekly. The deferral is optional. Bookstores can choose to continue withholding. Continuing withholding = less burden for employers. Employers are required to “make arrangements” with employees to collect and repay the deferred taxes in 2021. (Employers must submit the delayed payroll taxes by April 30, 2021, after which penalties and interest will accrue.) Continuing withholding = potential issues for employees. Employers may choose to stop withholding during the last four months of 2020, then double up and withhold those deferred amounts plus the usual payroll taxes during the first four months of 2021. This will result in employees receiving smaller-than-normal paychecks for the first four months of 2021. - For owners who are undecided, survey your staff, but take note:
- You’re responsible for tracking and submitting the deferred taxes.
- There may be challenges if an employee leaves your employment.
- There is discussion of the deferred payroll taxes being forgiven, but this means less funding for Social Security if the funds are not replenished through other revenue streams. The deferral, along with President Trump’s proposal to eliminate the payroll tax, has received bipartisan criticism.
This Week’s Events Buying Monthly: Tuesday, September 1, at 3:00 PM ET
This reprogrammed Coffee Break will feature guest speakers discussing the process of buying monthly vs. seasonally and will answer questions from attendees. More information can be found here, and booksellers who want to attend should email [email protected] if they don't already have the Coffee Break meeting credentials. Holiday Season Marketing: Thursday, September 3, at 1:00 PM ET
This Marketing Meetup will have bookseller guest speakers sharing their best suggestions and ideas for holiday marketing. More information can be found here, and booksellers who want to attend should register here. BIPOC Coffee Break: Thursday, September 3, at 6:00 PM ET
The next Coffee Break meeting space for BIPOC — Black, Indigenous, or People of Color — booksellers and bookstore owners to gather for connection, support, community, resources, and networking. In response to a participant survey, this session will be facilitated by Linda Dunbar, the chief executive and founder of Diversity Decoder. Identifying as a Black-American, Afro-Caribbean, and Jamaican-American woman and with a background in publishing, Linda has an understanding of some of the topics that participants may want to discuss, but she will facilitate and inform the discussion in whatever way serves participants. More information can be found here, and booksellers who want to attend should email [email protected] for the meeting-specific credentials. The meeting ID and password have changed since the last BIPOC meetup. (BIPOC allies and booksellers who do not identify as BIPOC should not plan to attend.) |
