On August 8, the President issued an Executive Memorandum allowing employees who make less than $104,000 a year to defer their payroll taxes starting September 1 through the end of 2020. This is an update on what we know as of today.
The business community is awaiting guidance from the Treasury Department regarding the implementation of this memorandum. The Secretary of the Treasury, Steve Mnuchin, has stated that participation will be voluntary. Therefore, employers can choose not to allow their employees to take advantage of this deferral. In addition, the President’s top economic advisor, Larry Kudlow, stated that the President is looking for ways to “fully forgive” the payroll tax deferral. But nothing has been issued in writing from any US Government entity.