Executive Order to Defer Payroll Taxes Signed by President

Over the weekend, President Trump signed four executive orders; one of those orders focused on a deferral of payroll taxes. The details of the executive order include:

• Defer the EMPLOYEE portion of social security taxes (employer has already been deferred under CARES Act)
• Effective for payroll paid during the period September 1, 2020 – December 31, 2020
• Effective for employees who earn less than $4,000 bi-weekly or less than $104,000 annually.

The Secretary of the Treasury will issue guidance on implementing the memorandum, but we do believe this order will be challenged.

To read the entire executive order, please click here.

As always, we will continue to stay abreast of breaking news and keep you updated accordingly. If you have questions about this or other topics, please know we are available to speak by phone at 215-675-8364.

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