On August 8, 2020, the President signed a Presidential Memorandum directing the Secretary of the Treasury to use his authority to defer the withholding, deposit, and payment of the employee’s share of Social Security tax on wages paid from September 1 through December 31, 2020, with respect to employees whose wages are less than $4,000 biweekly, or the equivalent as applied to other pay frequencies. The Memorandum instructs the Secretary to issue guidance to implement the deferral and to explore avenues to eliminate the obligation to pay the taxes deferred.
As of yet, the Secretary of the U.S. Treasury has not yet provided that guidance.
On August 20, the National Payroll Reporting Consortium issued a statement where they offered recommendations to the IRS regarding pending questions about the tax deferral.
The Society for Human Resources Management (SHRM) also published an article with an overview of the President’s Memorandum and a few recommendations of what HR payroll managers should do while we continue to wait on the Secretary’s guidance.
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