In addition, the Notice affirms that the obligation to remit these payroll taxes is postponed, not forgiven. In other words, an employee whose wages fluctuate may be eligible for deferral of Social Security taxes in one pay period, and then be subject to withholding for these taxes in the next pay period. The Notice clarifies that whether an employee’s wages are covered must be determined per pay period.
On September 3, an IRS attorney announced in a monthly payroll industry teleconference that employers are not required to utilize the relief, answering a question lingering after the Notice was issued.Īs detailed in the Executive Order, this deferral can apply to wages paid to an employee during the period between Septemand December 31, 2020, but only when the employee’s earnings are less than $4,000 per bi-weekly payroll period. Per the Notice, the Secretary of the Treasury has accepted the President’s directive to permit a temporary deferral of the withholding and payment of the employee share of Social Security taxes on certain wages. On August 28, 2020, the IRS issued Notice 2020-65 (“Notice”) to provide guidance concerning the Executive Order that President Trump issued on Aug(“Executive Order”).
0 kommentar(er)
