Financial Responsibility: What About Taxes? 2 Tax Issues to Focus on During the Pandemic

October 22, 2020
Modern Contractor Solutions

Types : Bylined Articles

PAYROLL TAXES HOLIDAY

Contractors—like all employers—are responsible for withholding federal and—where applicable—state and local income taxes from employees’ paychecks, as well as the employees’ contribution to payroll taxes (Social Security, Medicare, etc.), and to timely submit such withholdings to the relevant taxing authority. There are civil and criminal penalties for failing to do so timely and correctly, but the details therefor are beyond this article. Here the focus is on the “pandemic holiday” on certain federal payroll taxes adopted by the federal government.

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