New Executive Order Delays Workers’ Payroll Tax Payments
On Saturday, August 8, 2020, President Trump issued an executive order to defer the withholding, deposit, and payment of certain payroll taxes paid from September 1 through December 31, 2020.
Before employers take any action, there are a number of unknowns that still need to be addressed. For example:
Are all eligible employees automatically enrolled in the deferment? If so, is there an election out of it?
Is the employer or employee responsible for paying the taxes after December 31, 2020?
Can the employer continue to withhold the taxes but wait until after December 31, 2020 to either pay them out to employees if the tax is forgiven or pay them into the IRS?
How will these deferred taxes be reported and reflected on 2020 payroll tax filings and Forms W2?
Our team will continue to monitor any updates to this executive order and will keep you up to date with the latest information.