Employee Payroll Taxes Deferred
As negotiations continue for additional economic relief through the “CARES 2” act, President Trump issued an executive order deferring payroll taxes. Beginning September 1 and ending December 31, 2020, certain federal employee withholding taxes will be deferred. The deferral is hoped to allow more wages to pass through to employees, therefore providing more spending ability.
The “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster” employees portion of the 6.2% Social Security tax are deferred on wages paid September through December 2020. The Treasury Department has not issued guidance on implementing the deferral as of the posting of this article.
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