In all, the state pays an average of $13.5 million each month in payroll taxes, which are used to fund Social Security. The state’s next round of paychecks go out Sept. 15.
The payroll tax deferral has received an icy response from business and trade groups, who say it will create a significant tax liability for workers. They also worried about the time and expense of temporarily altering their payroll systems.
“Without congressional action to forgive this liability, it threatens to impose serious hardships on employees who will face a large tax bill as a result of deferral,” the U.S Chamber of Commerce said in a letter to Congress. “Many of our members will likely decline to implement deferral.”
The state of California announced last week that it will not participate in the deferral, which affects 230,000 government employees.
The hedging by Parson comes after his administration jumped at the chance to pay an extra $300 per week to those on unemployment.
Trump authorized the…