Trump’s Payroll Tax Holiday
On August 8, 2020, President Trump signed an executive order allowing a deferral of the employee’s portion of social security tax (6.2% of wages) for certain individuals.
The deferral applies to employee’s wages that are less than the equivalent of $4,000 on a bi-weekly basis between September 1, 2020 – December 31, 2020. The Treasury released additional guidance in Notice 2020-65, indicating the deferred taxes owed on December 31, 2020 must be withheld and repaid proportionally by the employer during the period January 1, 2021 – April 30, 2021.
The participation in this program is optional for an employer.
See the GOP article for additional guidance https://gop-waysandmeans.house.gov/how-it-works-president-trumps-payroll-tax-deferral-executive-order/.
Please contact us if you have any questions.
-Partner, Jamie Brewer, CPA