Are payroll tax deferrals imminent?
On August 8th, President Trump signed an Executive Order to defer payroll tax obligations in light of the ongoing COVID-19 crisis. This Executive Order directs the Treasury Department to defer the collection of the employee portion of Social Security FICA taxes from September 1st through the end of 2020. While this deferral will temporarily increase employee checks, the deferred taxes may have to be repaid unless Congress enacts legislation stating otherwise.
This is not a done deal as the Democrats are expected to challenge the President’s authority to institute such a deferral in court. If, however, the president’s directive stands, employers will be required to comply by September 1st.
Details on employer requirements would depend on guidance received from the Treasury Department. CHR will keep you abreast of developments and will be prepared to implement required changes accordingly.
If you have questions, please feel free to reach out to us directly:
Consolidated Human Resources
HR Compliance Department
(877) 801-8400 Ext. 3