Transcript for Small businesses wary of President Trump’s executive order
And president John positioning an executive order allowing this is just to put off paying Social Security taxes until the end of April. The president says the move will boost the economy by putting more money in the pockets of American workers. Critics say the order doesn't help the millions of people were out of work. And those whose employers will still withhold the usual amount ABC's Alex for Shea joins me now for more on this. House good morning how does this payroll tax deferral work exactly. Diane is so good morning to you under iris guidance it allows employers. To stop withholding Social Security tax. From there employees' paychecks through the end of the year end so essentially gets there were a little bit over 6% but as the name suggests. This is an ample without pay roll tax deferral not a forgiveness so eventually he have to pay that money back and so. We're finding that you oh through you'd have larger paychecks now. Just to have smaller paychecks come the start of 20/20 one and what we're finding from a lot of small business owners is that they don't wanna put their employees in the position to a low. When her there are already struggling through krona bars the other thing. But I'd note is what say you have an employee that leads before. The end of the year come tax time you as a business owner could be on the hook for paying those taxes back. Employers are saying the guidance on this his vague how does that work with state law or collective bargaining and so we're finding a lot of private sector businesses are not taking advantage of it. And I know you spoken with some workers and business owners about this what are they saying. Well I want to introduce you to one guy's name is Robert giant no easy owner of silver diner developments he's got and well over a thousand employees nearly two dozen restaurants. And if he's saying look. This seems really risky for both his employees and and his business and that he doesn't feel like you know the benefit is worth the risk. I think it's plain wood fire to stalking give them a debt that they don't expect. Because they rely Hamas is a business. You know two. To do right by them we never take that deduction from them that they're gonna have to pay back later. Now look anything to his all out forgiveness and we be having some different conversations with business owners but. There would still be a lot of questions about Social Security. And then a lot of questions about those that are unemployed but right now I'd just a little too much uncertainty for many of the small businesses that we've talked to. Alex it sounds again with this move the president is trying and at least a little bit make up for the fact that there's currently no. Deal for a stimulus measure out of congress and what's the latest on that. Well so we heard from the senate majority leader Mitch McConnell I. Tomorrow in the senate on a new corona virus economic relief bill. But again that's something that's met -- a little they have an impasse is gonna have to have some democratic support for that to get through and right now it doesn't look like. Those votes are there Ryan Alex for say we appreciate it thank you.
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