Payroll Tax Deferral Plan
The Treasury Department issued guidance and began implementing President Trump's August 8th executive order to allow a payroll tax deferral. Some payroll taxes that would normally be due between September 1 and December 31 can now be paid between January 1 and April 30, 2021. The deferral is intended to provide temporary assistance to employees affected by the pandemic.
Below is a summary of the order:
- Employers can elect to stop withholding the 6.2% payroll tax representing the employees' share of Social Security taxes.
- The deferral applies to workers with annualized salaries below $104,000.
- Employers must pay deferred taxes in the first four months of 2021; employees would still owe the taxes.
- Implementation of the order is optional.
Deferring payroll taxes could increase your legal exposure and tax obligation in 2021.
Contact your Whittlesey advisor to discuss your particular circumstances and its impact on your business or organization.
Our Financial Institution Services
For more than two decades, our teams have worked with New England banks and credit unions.
Ready to Connect?
We deliver personalized, expert services. Find out what we can do for you.