On August 28, the IRS and Treasury published Notice 2020-65, which provided guidance for employers on President Trump’s executive order on payroll tax deferral. Below, we’ve developed an executive summary of the items that matter most to businesses:
It is not clear from the published guidance whether this is optional on the part of employers, or whether employees can compel their employer to defer the tax. Similarly unclear is what would happen if an employee terminated before the tax was withheld. We hope the Treasury or IRS will clarify soon. We’ll continue to monitor Treasury and IRS guidance, and we will provide updates as we receive them.
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