Major Companies Reject Trump’s Payroll Tax Deferral

Complex administration of the tax deferral, and the prospect of having to double withholding from employee paychecks early next year, mean no major private businesses have taken advantage of the holiday.

By Laura Davison & Steve Matthews | September 11, 2020 at 02:07 PM

A month after President Donald Trump moved to shore up workers’ incomes by giving employers the option of deferring payroll taxes, the effort has failed to energize a U.S. economy still reeling from the coronavirus pandemic.

No major private employer has stepped forward with plans to forgo withholding the levy from workers’ paychecks—as Trump’s action allowed from September 1 through year-end. Costco Wholesale Corp., with 163,000 U.S. employees at latest count, isn’t participating, and neither is United Parcel Service Inc. nor FedEx Corp.

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