The payroll tax holidays are one of the few federal benefits that have remained largely intact for nearly a century.
For more than two decades, they have been an effective way for companies to attract and retain employees, especially if they can use the tax break to pay for hiring more people.
But they’ve been a contentious issue for some, with conservatives pushing for Congress to cut them and corporate executives pushing back.
So what happens when the holiday ends and we still have to pay taxes?
Here are the top things to know.
What is the payroll tax?
The payroll taxes are a tax on federal paychecks that companies and individuals pay when they hire employees.
The government collects the payroll taxes on payrolls paid before the holiday.
Under the law, these payroll taxes must be paid by January 31.
There are two ways companies can pay for the holiday: By reducing payroll taxes or by increasing payroll taxes.
When a company reduces its payroll taxes, it can keep up with its other taxes and get a bigger refund.
But when a company increases its payroll tax, it has to pay more.
In the past, companies have made up the difference in payroll taxes by raising prices.
But that’s no longer the case.
For 2017, most companies that hired workers this year will have to cut their payroll taxes to pay the payroll holiday.
If they raise prices to keep up, they could end up paying more than they should.
This is why the law requires them to reduce payroll taxes from 2017 through 2019.
How much will I pay?
Companies that hired employees in 2017 are supposed to pay payroll taxes of 0.9% of their payrolls (or $1,000), which is about $7,400 in 2017 dollars.
Companies that are on the payroll for less than a year but plan to increase wages or cut jobs, will be able to pay a total of 0 (or about $2,100) in 2017.
How long will it take?
In 2018, the tax law calls for employers to report their 2017 payroll taxes electronically, but the IRS does not yet have a date to release the information.
A few years ago, the Treasury Department released a list of estimated tax benefits that could be realized in 2018.
These benefits include: a reduction in the cost of complying with the payroll reporting requirements