The AICPA on Wednesday, Aug. 12, sent a letter to Treasury and the IRS requesting guidance on the recent presidential memorandum deferring some employee payroll taxes until next year.
President Donald Trump’s memorandum defers the withholding, deposit and payment of the employee portion of the old-age, survivors and disability insurance (OASDI) tax under Sec. 3101(a) and Railroad Retirement Act Tier 1 tax under Sec. 3201 for any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000.
The AICPA’s letter requests guidance on several issues related to the implementation of the deferral, including specifics on how the deferral will work and for a model statement for employers to use. Read more.