- Many businesses have recognized that the relief doesn't apply to the first $4,000 in wages, but rather to wage payments of $4,000 or less in a bi-weekly period. This creates a very large cliff for the first dollar an employee earns over $4,000 (someone earning $4,000 pretax would not have the tax withheld, but someone earning $4,001 would have $248 withheld).
- The program appears especially difficult for employees who work fluctuating hours (i.e., making more than $4,000 one pay period, but less than $4,000 another pay period), as they may have the tax withheld for some pay periods but not others. Updating payroll systems to accommodate these nuances is likely exceedingly difficult.
- If employees do not have the tax withheld, employers will need to remit the tax beginning next year. This can be particularly difficult in high-turnover industries, where an employee may no longer be with the company next year and thus the employer would be on the hook for any taxes owed.
Subscribe to Updates
NATSO provides a breadth of information created to strengthen travel plazas’ ability to meet the needs of the travelling public in an age of disruption. This includes knowledge filled blog posts, articles and publications. If you would like to receive a digest of blog post and articles directly in your inbox, please provide your name, email and the frequency of the updates you want to receive the email digest.