Tax News Update    Email this document    Print this document  

August 28, 2020

IRS issues guidance implementing Social Security tax withholding under Presidential Memorandum

On August 28, 2020, the IRS and Treasury Department issued Notice 2020-65 with guidance on implementing the August 8, 2020 Presidential Proclamation allowing employers to defer withholding and paying the employee's portion of the Social Security tax on wages less than $4,000 during a bi-weekly pay period. The deferral generally applies to wages paid from September 1, 2020, through December 31, 2020. Employers must subsequently withhold and pay the deferred taxes ratably on wages and compensation paid between January 1, 2021 and April 30, 2021.

Tax Alerts on the notice are forthcoming.