2020 Employee FICA Tax Deferral Guidance Issued

In an August 8, 2020 executive order, President Trump deferred the employee's portion of Social Security taxes for many employees and instructed the Secretary of the Treasury to explore avenues, including legislation, for eliminating the obligation to pay the deferred taxes.

This executive order directed Treasury Secretary Mnuchin to defer withholding, deposit, and payment of the 6.2% employee’s share of Social Security tax for the period of September 1, 2020, through December 31, 2020. The Secretary of the Treasury was given until September 1 to outline the details.

On August 28, 2020, the IRS provided limited additional guidance on this matter. Attorney Charles M. (Chip) Watkins, with Webster, Chamberlain & Bean, LLP, has prepared a thorough analysis of this new guidance. To read his memo, click here.

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