President Donald Trump issued four memoranda on Saturday to extend relief during the coronavirus pandemic. Most important to businesses and employees is an executive order to defer (not forgive) the withholding, deposit, and payment of certain payroll taxes paid from September 1 through December 31, 2020.
This deferral applies to any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000. The tax payments are deferred without any penalties, interest, additional amount, or addition to the tax, and applies to the employee portion of the old-age, survivors, and disability insurance (OASDI) tax.
The Treasury Department is directed to issue guidance to implement the order and to explore ways to ultimately eliminate the obligation to pay the deferred taxes.
Please continue to check back with us for updates.
For more information on navigating your business through the current crisis, including managing PPP loans, please visit our COVID-19 resource center or join us on an upcoming free webinar. Recorded sessions are available on our YouTube channel.
