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

Trendingnow

1

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

2

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’

3

He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis

1

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

2

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’

3

He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis
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
Add Fortune on Google for similar content.

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
Add Fortune on Google for similar content.

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

tsmc
North AmericaSemiconductors
Taiwan’s chip superpower just pledged another $100 billion to help the U.S. get its act together
By Chan Ho-Him and The Associated PressJuly 16, 2026
1 hour ago
clark
PoliticsCongress
Washington still voted to send Israel $3.3 billion in aid — but over half of the House Democrats revolted
By Lisa Mascaro, Nick Lichtenberg and The Associated PressJuly 16, 2026
1 hour ago
‘Criminalized for what’s on your bookshelf’: Hong Kong’s third bookstore raid this year
AsiaHong Kong
‘Criminalized for what’s on your bookshelf’: Hong Kong’s third bookstore raid this year
By Kanis Leung and The Associated PressJuly 16, 2026
2 hours ago
steel
North Americasteel
‘British Steel now belongs to the British people’: China booted from national champion to save thousands of jobs
By Danica Kirka and The Associated PressJuly 16, 2026
2 hours ago
The time for Clarity is here: Congress has a chance to pass the most important technology law since the Telecoms Act
CryptoCryptocurrency
The time for Clarity is here: Congress has a chance to pass the most important technology law since the Telecoms Act
By Patrick McHenryJuly 16, 2026
2 hours ago
t
EconomyTariffs
Rubio blames Brazil’s 25% tariffs on Lula’s ‘ego’ — but exempts coffee and beef
By Michelle L. Price and The Associated PressJuly 16, 2026
2 hours ago

Most Popular

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
Law
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
By Barbara Ortutay, Alexandra Olson and The Associated PressJuly 15, 2026
1 day ago
FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
C-Suite
FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
By Fortune EditorsJuly 15, 2026
23 hours ago
He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis
Innovation
He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis
By Lily Mae LazarusJuly 15, 2026
1 day ago
Jamie Dimon understands why people are anti-rich: 'We have, in fact, left the lower-income folks behind' and 'that's kind of annoying'
Economy
Jamie Dimon understands why people are anti-rich: 'We have, in fact, left the lower-income folks behind' and 'that's kind of annoying'
By Eleanor PringleJuly 15, 2026
1 day ago
MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
Newsletters
MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
By Sydney LakeJuly 14, 2026
2 days ago
After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
North America
After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
By Marco Quiroz-GutierrezJuly 14, 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.