![]() ![]() ![]() Notice 2020-65 places the responsibility for remitting the deferred Social Security taxes on employers. Employers should weigh a number of factors, including, but not limited to, the administrative burden and employee expectations when deciding whether to participate in the Social Security tax deferral program. Second, the Deferral Memo and Notice 2020-65 clarify that the payment of the employee portion of any Social Security tax is only deferred (not forgiven). Notice 2020-65įirst, neither the Deferral Memo nor Notice 2020-65 requires that an employer defer the employee portion of Social Security taxes thus, whether to participate in the Social Security tax deferral program appears to be at the employer’s discretion. Notice 2020-65 attempts to address these issues. However, the Deferral Memo did not provide details regarding what wages are eligible for deferral, when the deferred Social Security taxes must be paid or whether the employer or employee is responsible for remitting the deferred Social Security taxes. The Deferral Memo provides that the employee portion of Social Security taxes on certain wages are deferred (i.e., wages paid to employees earning less than $4,000 on a bi-weekly basis between September 1, 2020, and December 31, 2020, are eligible for deferral). The Internal Revenue Service (“IRS”) issued Notice 2020-65 on August 28, 2020, providing additional guidance for the administration of the payroll tax deferral announced in President Trump’s August 8, 2020, Presidential Memorandum (the “Deferral Memo”) instructing the Treasury Department (the “Treasury”) to defer the withholding, deposit and payment of certain payroll tax obligations. ![]()
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