IRS issues initial guidance on deferral of employee portion of Social Security tax
The Department of Treasury’s Internal Revenue Service for implementing the White House’s Aug. 8 executive order on payroll taxes, which applies to wages paid Sept. 1 through Dec. 31, 2020.
Under the memorandum, non-federal employers may defer withholding and payment of an employee’s portion of the Social Security tax if the employee earns less than $4,000 biweekly.
The IRS says these taxes must be repaid between Jan. 1 and April 30, 2021, or interest, penalties and additions to tax will begin to accrue on May 1, 2021. This differs from the Coronavirus Aid, Relief, and Economic Security Act payroll tax delay of the employer share, which began March 27 and allows repayment over a two-year period.
Related News Articles
Headline
The Centers for Medicare & Medicaid Services today released a notice seeking public comment on the collection of information request regarding the State…
Headline
The Trump administration yesterday released executive orders on reducing anti-competitive regulatory barriers and repealing certain regulations deemed unlawful…
Headline
The Office of Management and Budget April 9 released a notice seeking public input on rules to potentially be rescinded, requesting detailed reasons…
Perspective
Congress returns to Washington, D.C., next week following the summer recess, and lawmakers can expect a busy fall as they face a full plate of issues that need…
Perspective
While Congress passed legislation last month to fund the federal government through September, it’s looking like there will be very few other pieces of…
Headline
The Centers for Medicare & Medicaid Services Feb. 8 released a proposed rule intended to strengthen oversight of organizations that accredit health care…