What you need to know or what we don’t know? The President’s Executive Order came out on August 8, 2020 with the following:
- Employee only paycheck of social security 6.2% tax can be deferred between 9/1/2020 and 12/31/2020.
- Deferred, but not forgiven as of now, asking the Treasury to explore forgiveness.
- No deferral on employee Medicare tax of 1.45%.
- Applies to employees earning under $4K gross wages in bi-weekly payroll.
Treasury Department has been silent regarding guidance, payroll companies are waiting for further guidance, employers are hesitant to implement without some further guidance, and employees are worried about a large debt piling up that might come due if it is not forgiven.
Employers, employees, and payroll companies are all hoping for some additional guidance to come out this week, fingers crossed!