The IRS issued guidance Thursday, Oct. 29, for reporting the deferral of withholding, depositing and paying of certain payroll tax obligations as authorized by the Aug. 8 presidential memorandum directing Treasury to defer taxes under Sec. 7508A.
Notice 2020-65 allows employers the option to defer the employee portion of Social Security tax from Sept. 1 through Dec. 31, 2020, for eligible employees earning less than $4,000 per biweekly pay period (or the equivalent threshold amount with respect to other pay periods) on a pay period-by-pay period basis.
To pay the deferred amount of the employee portion of Social Security tax, the employer will ratably withhold the amount deferred from the employees' paychecks from Jan. 1, 2021, through April 30, 2021. See more.