On 08/28/2020, President Trump announced that employers can suspend the collection of Social Security taxes. The US Treasury Department announced guidance which allows employers to offer their workers a temporary deferral of the 6.2% payroll tax employees pays into the Social Security trust. I recommend the following;
What you should know:
- Allow employees to opt in. Those who do not opt in do not have to take any action (there is no guarantee of forgiveness to date).
- Employees should into the deferral using a payroll deduction authorization form that authorizes recovery of any employee unpaid social security taxes should an employee leave your employ between September 01 and December 31, 2020.
- Provide more information about 2020 taxes and stimulus funds from the IRS website.
- Provide a disclaimer such as, “Seek advice from a financial advisor or accountant as (company name) cannot advise you about tax matters.
- Other resources for employers.