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September 8, 2020
2020-2182

Executive summary on the employee Social Security tax deferral

On August 28, 2020, the IRS responded in Notice 2020-65 to a Presidential Memorandum (executive order) by allowing employers to defer the 6.2% employee share of Social Security and the comparable Railroad Retirement tax for certain employees from September 1, 2020, to December 31, 2020.

In the attached PDF file, we provide an executive summary of this IRS guidance, the aspects of this deferral program that are currently uncertain and employer considerations.

We will be updating this executive summary periodically to include future developments.

You can read more details about the employee Social Security deferral program in our alert here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
Compensation and Benefits Group
   • Christa Bierma (christa.bierma@ey.com)

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