On August 8,2020 President Trump signed a memorandum allowing employees making up to $4000.00 pre-tax bi-weekly, to defer paying their portion of social security taxes. The tax deferral went into effect on September 1,2020 and will end on December 31,2020.
At this point and time, the monies deferred will have to be paid back in full. Guidance put out by the IRS on August 28, 2020 suggests that it will have to be paid back in full by April 30, 2021. It will be an additional deduction from the employees check. The guidance also suggests that ultimately the employer is responsible for the repayment of these taxes.
Payroll Service Solutions is not automatically deferring this. If you have an employee that would like to defer their social security tax, contact our office to obtain necessary paperwork.