IRS issues guidance implementing Trump's payroll tax deferral order

[mystery-ak]

IRS issues guidance implementing Trump's payroll tax deferral order
By Naomi Jagoda - 08/28/20 06:39 PM EDT

he IRS late Friday released guidance implementing President Trump’s executive order from earlier this month on deferring payroll taxes.

The release of the three-page notice comes just days before the Tuesday start date for the deferral period.

Under the guidance, employers can opt to not withhold Social Security payroll taxes from their employees’ paychecks from September through December. To pay the amounts that were deferred, the amount of Social Security payroll taxes withheld from employees’ paychecks would increase from Jan. 1 through April 30.


Employers can only defer payroll taxes for employees who make less than $4,000 on a biweekly basis.

Trump signed a memo on deferring payroll taxes earlier this month in an effort to provide relief to workers amid the coronavirus pandemic. He has said he would forgive any deferred taxes if he wins reelection in November, though such a move would require congressional action.

more
https://thehill.com/policy/finance/514218-irs-issues-guidance-implementing-trumps-payroll-tax-deferral-order

[truth_seeker]

Perfect time for bureaucratic permanent govt. to foot drag and fail to implement by election day.

"Why even try? We don't know he will win.

[mystery-ak]

Perfect time for bureaucratic permanent govt. to foot drag and fail to implement by election day.

"Why even try? We don't know he will win.

Even if Trump wins Congress has to approve the forgiveness of the deferred taxes or employees are gonna be pissed as hell when they have to repay it..

My husband has a pt job and I already told him to  make sure to tell payroll to keep taking this out of his check.

[mystery-ak]

Trump administration allows deferral of Social Security tax

It allows employers to offer their workers a temporary deferral of the 6.2% payroll tax employees pay into the Social Security Trust Fund for the rest of this year

“However, it makes clear that employees will be required to pay more taxes beginning in January to offset any benefit they receive now,” Bradley said. “The only way to achieve a workable proposal is for Congress and the administration to come together and enact a change in the law.”

An analysis by the Chamber found that a hypothetical worker making $75,000 a year would get nearly $179 more every two weeks through the rest of this year. But that same worker would owe about $1,610 next year. A worker making $35,000 would get about $83 more biweekly the rest of this year, and owe just over $750 next year.

more
https://www.foxbusiness.com/politics/trump-adm-tax