President Trump Defers Social Security Tax 09/01-12/31, 2020
On 08/28/2020, President Trump announced that employers can suspend the collection of Social Security taxes. The US Treasury Department announced guidance which allows employers to offer their workers a temporary deferral of the 6.2% payroll tax employees pays into the Social Security trust. I recommend the following;
What you should know:
Allow employees to opt in. Those who do not opt in do not have to take any action (there is no guarantee of forgiveness to date).
Employees should into the deferral using a payroll deduction authorization form that authorizes recovery of any employee unpaid social security taxes should an employee leave your employ between September 01 and December 31, 2020.
Provide more information about 2020 taxes and stimulus funds from the IRS website.
Provide a disclaimer such as, “Seek advice from a financial advisor or accountant as (company name) cannot advise you about tax matters.
Other resources for employers.