October 26, 2020
Executive summary on the employee Social Security tax deferral updated to include IRS guidance through October 1, 2020
In late August 2020, the IRS responded (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. On October 1, 2020, the IRS provided additional guidance in the revised Form 941 instructions. (See EY Tax Alert 2020-2402.)
In the attached PDF file, we provide an update of our executive summary of this IRS guidance, which addresses guidance contained in the revised Form 941 instructions, 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 Tax Alert here.
EY Payroll News Flash
EY Payroll News Flash Executive Summary