Employers May Defer Withholding of Social Security Tax Beginning September 1

On August 8, 2020, President Trump issued a Presidential Memorandum directing the Secretary of Treasury to use his authority to defer the withholding, deposit, and payment of the employee’s portion of the Social Security tax (6.2 percent) imposed on wages paid during the period of September 1, 2020 through December 31, 2020. The deferral is only available with respect to any employee the amount of whose wages payable during any bi-weekly pay period generally is less than $4,000, calculated on a pre-tax basis, or the equivalent amount with respect to other pay periods. The memorandum required the Secretary of Treasury to issue guidance implementing these measures.

READ: Employers May Defer Withholding of Social Security Tax Beginning September 1