There are still unknowns with the President’s executive order regarding payroll tax deferral. Though the order is set to begin 9/1, there is currently not enough information available from the treasury to begin this deferral process. This option may not be available for several more weeks.
Here is what we know so far:
- It will be the employers decision on whether to take advantage of the deferment of the employee share of payroll taxes
- Without action from congress, the amounts deferred will need to be repaid
- The employer is ultimately responsible for repaying the amounts deferred
- The recommend method of repayment is by increasing the amounts withheld from employees January 1, 2021 – April 30, 2021
- The employer may be liable for repayment if an employee leaves during the deferral period