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 or you may reach us via email at firstname.lastname@example.org.
DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.