In early August, 2020, President Trump issued an executive order deferring the employee portion of Social Security Tax beginning September 1, 2020, through the end of the year. As of today, the Treasury Department has not issued guidance as to how employers should implement this Payroll Tax Holiday deferral.
Until guidance is issued from the Treasury Department, we will continue to withhold Social Security tax from our client payrolls but are offering the deferment option upon request. If you are opting for deferment of the employee portion of Social Security Tax for your company’s payroll, you may wish to inform your employees that this is a deferment and not a reduction of the Social Security tax. Employees will owe this tax when they file their 2020 personal tax returns.
As always, if you have any questions, please do not hesitate to call us (215-723-4881).