Aug 31, 2020, 6:15 PM
(From SHRM) On August 8, 2020, President Trump signed an executive order which allows companies to defer Social Security and Medicare taxes from September 1 through the end of the year. The postponed taxes must then be paid during the first four months of 2021, unless legislation is enacted stating otherwise. New guidance from the IRS, published August 28, summarizes the order but provides a minimum of information and leaves many questions to be answered, presumably to be answered in follow-up guidance. Given these circumstances, it is uncertain whether many private-sector employers will suspend collection of their employees' Social Security taxes, and, if they do so, when they could reasonably adjust their payroll systems to stop withholding these taxes. Meanwhile, benefits attorneys have also urged employers to take a cautious approach.
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