HOW TO IMPLEMENT THE PAYROLL TAX HOLIDAY
Recently, the President issued a memorandum on “Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster.” This memorandum institutes a payroll tax holiday for the rest of 2020, specifically for social security. The IRS also issued guidance on the memorandum for interpretive purposes.
General Policy
Employers that are required to withhold and pay the employee’s share of social security tax (or the railroad retirement tax equivalent) have the option of deferring those taxes for the period of September 1, 2020 through D...