SUBSCRIBE NOW AND SAVE 3 months just 99¢/month



Tax experts warn businesses ahead of payroll tax cut executive order

FARGO — A local tax expert is warning business owners against taking part in the payroll tax cut, saying it "kicks the can down the road."

One of President Trump's executive orders from last weekend gives employers permission to not withhold a 6.2 percent social security tax from paychecks.

WDAY News spoke with Devon Liljenquist, a CPA with Arrow Advisors in Fargo. He said under the current order, employers will eventually have to pay the losses. This would likely occur during the next tax season on or after January, but no timeline has been set for how long the cut will last — just that it starts September 1st.

Liljenquist recommends business plan as if these tax cuts have to be paid back by the next tax season in January.

"Continue to withhold that tax as you always have, until we get either a bill from congress or better guidance from the IRS saying how it's going to be handled," Liljenquist said.


He said only congress can pass legislation that would not require businesses to pay back what is lost from the cut, but time is already running out. His worry is this businesses could take the brunt of the cost, or be forced to increase the amount of money withheld from employee paychecks.

"In my opinion, making the decision to stop withholding this tax in hopes of congress passing a bill and coming to an agreement on this in an election year sounds like a risky move," Liljenquist explained.

Liljenquist believes payroll services like ADP are not equipped to stop withholding the tax cut by September 1st.

What to read next
The vaccine-only showings will start Friday, Jan. 21, and will be updated every couple of weeks depending on new releases.
When given early, lab-engineered antibody infusions have reduced COVID-19 hospitalizations among persons at high risk. Previous versions of these treatments do not appear to work against the omicron variant, however. Replacement products are in short supply, with providers given a few dozen treatments weekly while managing hundreds of new patients.
Sanford Health administrators stress that no agreement has been reached, and can't predict when pandemic conditions will allow them to accept Canadian patients.
The 13 fatalities raise the state's COVID-19 death toll to 2,573, with 85 deaths reported in January thus far. The COVID-19 daily hospitalization tally jumped significantly, climbing 44 to 392. Of those, 76 are in intensive care.