• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

U.S. says deals with Iran for safe Hormuz transit are prohibited

2

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

3

After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'

1

U.S. says deals with Iran for safe Hormuz transit are prohibited

2

Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt

3

After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'
Financepayroll

ADP, the biggest U.S. payroll service, won’t implement Trump’s ‘tax holiday’ for some clients

Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
Jeff John Roberts
By
Jeff John Roberts
Jeff John Roberts
Editor, Finance and Crypto
Down Arrow Button Icon
September 8, 2020, 1:07 PM ET

ADP, which processes the paychecks of millions of Americans, has decided it will not offer certain clients a means to implement a controversial White House dictate to stop collecting a 6.2% Social Security levy.

“ADP TotalSource has decided to not take part in the deferral, and it will not be an option for any client or employee,” said an ADP staffer in an email seen by Fortune.

An ADP spokesperson told Fortune that clients who use its TotalSource product will not have an option to take part in the deferral, but other clients will be able to suspend the Social Security collection at their discretion. The spokesperson added that 13,000 firms use TotalSource and that the arrangement puts responsibility for federal tax liability and penalties on ADP.

The decision comes amid widespread pushback against the White House plan by U.S. businesses, including the Chamber of Commerce, which recently described it as “unworkable.”

President Trump issued the executive order to suspend the collection of the 6.2% payroll tax in mid-August as part of a series of proposed measures to stimulate the economy. But critics quickly pointed out that the President doesn’t have the authority to raise or lower taxes—the Constitution reserves that power for Congress—which means that employees would have to repay the deferred taxes months later.

Trump’s order also presents an administrative headache for employers, which would have had to change their payroll operations and explain the significance of the changes to their workers.

ADP, which serves more than 800,000 businesses, published a guide for employers last week that suggests explaining to employees that Trump’s order is simply a tax deferral and not a tax cut.

Individual employers could unilaterally implement the payroll order by switching to another payroll provider, or carrying out the task themselves, but it is unlikely that many will do so, especially as the order has received little support in Congress or from organized labor.

Meanwhile, the U.S. government is slated to impose the payroll tax deferral for its employees in mid-September, a move that’s led critics to charge federal workers are being treated as a “guinea pig.” The head of an organization representing such workers blasted the decision as a “scam that leaves workers with a substantial tax bill right after the holiday season,” according to the Washington Post.

The plan to impose the order on federal workers also reportedly applies to 1.3 million active duty military members, with no ability to opt out.

While President Trump has suggested Congress could forgive the tax deferral by means of legislation, there is no indication that will happen for now.

The Treasury Department did not immediately respond to a request for comment about ADP’s decision not to implement the order. Intuit, one of ADP’s largest competitors, did not state whether the company plans to make a similar decision.

This story has been updated to clarify the nature of ADP TotalSource.

More must-read finance coverage from Fortune:

  • Investors are pouring record amounts into Wall Street’s new favorite “safe haven”
  • First he took energy trading and the NYSE electronic. Now Jeff Sprecher of ICE shares his plans to digitize your mortgage
  • The bizarre reason Amazon drivers are hanging phones in trees near Whole Foods
  • The humbling of Europe’s most-hyped startup incubator: Rocket Internet
  • Fortune’s 2020 40 Under 40
About the Author
Jeff John Roberts
By Jeff John RobertsEditor, Finance and Crypto
LinkedIn iconTwitter icon

Jeff John Roberts is the Finance and Crypto editor at Fortune, overseeing coverage of the blockchain and how technology is changing finance.

See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Financial markets are losing the security blanket that’s bailed them out of trouble so many times, top economist warns 
EconomyMarkets
Financial markets are losing the security blanket that’s bailed them out of trouble so many times, top economist warns 
By Jason MaMay 31, 2026
2 hours ago
AI will make the ‘tech bro’ class even richer, Nobel laureate Joe Stiglitz says, just as it can take your job
AIJobs
AI will make the ‘tech bro’ class even richer, Nobel laureate Joe Stiglitz says, just as it can take your job
By Catherina GioinoMay 31, 2026
3 hours ago
peter thiel
AIskills
Forget the STEM safety net. Peter Thiel warns AI is a bigger threat to technical roles than to creative thinkers
By Jake AngeloMay 31, 2026
3 hours ago
Hegseth seeks to convince allies U.S. should stay quiet on Taiwan
AsiaChina
Hegseth seeks to convince allies U.S. should stay quiet on Taiwan
By Josh Xiao, Philip J. Heijmans and BloombergMay 31, 2026
4 hours ago
Allison Danielsen is CEO, Tallo.
CommentaryCareers
My wrist injury derailed my college plans. It’s why I’m a CEO today
By Allison DanielsenMay 31, 2026
7 hours ago
treble
CommentaryElections
I built a startup from scratch and still nearly died because of a broken healthcare system. That’s why I’m running for Congress
By Jonathan TrebleMay 31, 2026
7 hours ago

Most Popular

U.S. says deals with Iran for safe Hormuz transit are prohibited
Politics
U.S. says deals with Iran for safe Hormuz transit are prohibited
By Jack Wittels and BloombergMay 30, 2026
1 day ago
Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
Economy
Surging Treasury yields expose a brutal truth: America has no margin for error on its $39 trillion debt
By Shawn TullyMay 30, 2026
2 days ago
After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'
Law
After a judge ordered Trump's name be removed from the Kennedy Center, president says it will 'soon be closed, probably never to open again'
By Collin Binkley and The Associated PressMay 30, 2026
22 hours ago
After Blue Origin rocket explosion, NASA's entire moon exploration program depends on SpaceX for now as Musk eyes blockbuster IPO soon
Innovation
After Blue Origin rocket explosion, NASA's entire moon exploration program depends on SpaceX for now as Musk eyes blockbuster IPO soon
By Jason MaMay 30, 2026
23 hours ago
Damn the torpedoes — More ships are quietly slipping through the Strait of Hormuz as helicopters scare off Iran's fast-attack boats
Energy
Damn the torpedoes — More ships are quietly slipping through the Strait of Hormuz as helicopters scare off Iran's fast-attack boats
By Jason MaMay 30, 2026
1 day ago
Meet the Black women on Fortune's Most Powerful Women list shaping business leadership
MPW
Meet the Black women on Fortune's Most Powerful Women list shaping business leadership
By Cheyann HarrisMay 29, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.