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Carbon commissioners delay tax deferral decision

Carbon County Commissioners will take at least an extra week before deciding whether or not to opt out of President Donald Trump’s payroll tax deferral plan.

The three-member board unanimously tabled a motion Thursday to opt out of the plan, which allows employers to defer workers’ 6.2% Social Security tax until the end of the year.

Many other counties across the state, Commissioners’ Chairman Wayne Nothstein said, have opted out of the plan, citing potentially a much higher tax bill next year to catch up.

“Right now, there are a still a lot of questions,” Nothstein said. “If the tax is not forgiven, then you have to pay it back next year, and I think that really gets into a touchy situation.”

Commissioner Chris Lukasevich asked for the extra week, however, to give the county time to investigate whether the money that would be deferred could be held in escrow until such questions can be answered.

“I think if we could put it in escrow until Congress reconvenes and makes a decision on whether there will be forgiveness or this has to be paid back, then we could give our employees that option,” Lukasevich said.

Guidance thus far from the Treasury Department and the Internal Revenue Service indicates employers would be responsible for paying the back taxes between January and April 2021, even if they could not recoup them from employees.

“My concern is people would have to start making double payments in January already,” Commissioner Rocky Ahner said. “If people take the money and spend it, then what?”

County Treasurer Ron Sheehan said he has only received one letter from an employee who indicated that they want the county to continue taking the payments out of their check.

“I don’t know if we would be allowed to escrow that money,” Sheehan told commissioners. “I think there needs to be more discussion between myself, human resources, data processing, the controller and the commissioners.”

Workers who make less than $4,000 biweekly are eligible for the payroll tax deferral. The U.S. Chamber of Commerce estimated that employees making $50,000 a year would have about $1,073 deferred over nine biweekly pay periods.

A survey by the National Association of State Auditors, Comptrollers and Treasurers showed that at least 27 states already have decided not to defer the tax. Many Fortune 500 companies have also declined the deferral.

“I just think it would be a bookkeeping nightmare,” Nothstein said.