8月8日, 2020, President Trump signed an executive memor和um that defers an employee’s portion of Social Security 和 Medicare taxes from September 1 through December 31, 2020. At this point, the taxes are just deferred, meaning they’ll still have to be paid at a later date. However, the action directs U.S. Treasury Secretary Steven Mnuchin to “explore avenues, including legislation, to eliminate the obligation to pay the taxes.”
The exact impact on employers 和 employees isn’t yet known. There are many open questions, including President Trump’s legal ability to implement the deferral. Some experts believe there may be legal challenges to this executive action.
Payroll tax deferral details
The payroll tax deferral will be available for “any employee the amount of whose wages or compensation, 是适用的, payable during any bi-weekly pay period generally is less than $4,000.”
The deferral will be calculated on a pretax basis or the equivalent amount with respect to other pay periods. +, the amounts will be deferred without any penalties, 感兴趣, additional amount or addition to the tax.
Stay tuned for additional guidance
No doubt there is much to flesh out about this payroll tax deferral. Secretary Mnuchin has been instructed to provide additional guidance 和 employers can’t act on the deferral until that happens. It’s also possible Congress could take action.
We’ll be monitoring developments 和 their implications. Please contact 老葡京手机app Tax Practice Director Richard Morris via our online contact form 有问题吗?.
Councilor, Buchanan & 老葡京手机app(老葡京手机app) is a professional services firm delivering tax, accounting 和 business advisory expertise throughout the Mid-Atlantic region from offices in 马里兰州贝塞斯达 和 华盛顿特区.
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