10 Aug Payroll Tax Deferral Update
To our esteemed Clients,
Payroll Partners is monitoring the rapidly changing situation related to the executive actions taken by President Donald Trump over the weekend and their effects on your employer and employee responsibilities.
In question are the following actions the President signed off on this past Saturday:
- Extension of unemployment benefits
- Halting of residential evictions
- Payroll tax deferral (not cut)
- Extension of student loan relief
Of particular interest to our industry and clients is the payroll tax deferral. We know the executive order pertaining to payroll tax obligations was submitted in the form of a memorandum for the Secretary of the Treasury Steve Mnuchin by the Office of the President. In it, the Treasury is directed to defer the withholding of payroll taxes on wages or compensation paid during the period of September 1, 2020 through December 31, 2020.
The Treasury Department has been tasked with issuing guidance to implement this memorandum. We are awaiting further instruction from the Treasury Department until they have a chance to review and issue their determination related to this payroll tax deferral.
As a critical partner to your business, we understand that limiting any impact these events could have on your employer obligations is imperative. We will continue to monitor this fluid situation and will disseminate more pertinent information as it becomes available to us.
At Payroll Partners, we appreciate the trust you’ve placed in us to help you through these unprecedented times.
Your Payroll Partners Team
This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.