WADR and off the top of my head . . .

Posted on: March 15, 2020 at 13:29:28 CT

Three different taxes are withheld from an employee's compensation: income, FICA and Medicare.

Withheld income taxes are applied against the individual's income tax liability. If the "tax holiday" allows employer's to not withhold income taxes, it will impact whether the taxpayer owes additional income taxes and the amount owed or is entitled to refund and the size of that refund. It depends on the law and the individual's particular situation.

FICA and Medicare are not included in either the amount of an individual's income tax liability or the amount of withheld tax applied against that liability.

Whether or not an individual will receive a smaller refund or owe additional income tax depends on the contents of whatever bill is passed by Congress and signed by the President.

Conceivably, the law could impact an individual's FICA and Medicare withholding (or not impact it). To determine whether that would happen requires knowing the actual provisions of the law. We don't know those yet.