American workers have been hit hard by the Coronavirus Pandemic. To help ease the impact of this ongoing disaster President Trump has administered a variety of programs to assist workers. On August 8th, 2020 President Trump signed several executive orders one allowing for the suspension of Social Security Tax collection for individuals making less than $4,000 on a bi-weekly basis, and is effective September 1 through December 31, 2020.
How It Works
On August 28th, The IRS provided guidance to employers on how to apply the memo in regards to the applicable wages and due date of deferred social security taxes via Notice 2020-65.
This small but targeted action was initiated to put money directly into the pockets of American workers and generate additional incentives for work and employment at such a critical time when money is needed most.
***It is important to note that Congress could choose to waive these payments. This would require legislative action. Until that occurs, taxpayers should be prepared to remit these funds to the IRS next year.***
For a more in depth explanation on this Social Security Tax Deferment please refer to The Memorandum For the Secretary of The Treasury.
If you would like further guidance on this deferment or have any general questions you may call the Notice 2020-65 Hotline at (202) 317-5436 (not a toll-free number).