Payroll Tax Deferral Guidance Leaves Gaps for Companies to Solve

Major questions remain unanswered after the IRS issued guidance on President Donald Trump’s payroll tax deferral.

The lack of clarity is likely to scare away companies that were already wary of taking advantage of the benefit due to the headaches associated with pausing withholding of the taxes in the short term, only to have to repay them later, tax professionals said.

The Friday notice sheds light on what types of wages and compensation are covered and ultimately places the burden on employers to withhold and pay back the deferred amounts next year. Unanswered questions include how the deferral will interact ...