The Department of Treasury and Internal Revenue Service ("IRS") issued guidance (PDF) implementing the Presidential Memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee's portion of the Social Security tax if the employee's wages are below a certain amount.
Notice 2020-65, posted on IRS.gov, makes relief available for employers and generally applies to wages paid starting September 1, 2020, through December 31, 2020.
The employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.
The notice postpones the time for employers to withhold and pay employee Social Security taxes.
For any questions or concerns, please contact the Tax Attorneys at Fazzio Law, we are in your corner!
To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."