In a letter to the U.S. Treasury and the IRS, two payroll associations weigh in on the payroll tax deferral.
August 26, 2020
The groups expressed concern that employers don’t have enough time to implement it. On Aug. 8, President Trump issued an executive memorandum to defer the employee’s portion of Social Security tax from Sept. 1 through Dec. 31, 2020. He directed the Treasury to issue guidance on the deferral but it hasn’t been issued yet.
The groups made several recommendations, including that employers NOT be held liable for taxes deferred. Employees should pay any deferred amounts with their 2020 income tax returns, according to the National Payroll Reporting Consortium and the American Payroll Assn.