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Guidance issued on employer deferral of withholding and payment of Social Security tax

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The U.S. Department of the Treasury and the IRS recently issued guidance on implementing the presidential memorandum issued on August 8, 2020, allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount.

Notice 2020-65 makes relief available for employers and generally applies to wages paid starting Sept. 1, 2020, through Dec. 31, 2020.

The employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.

The notice also postponed the time for employers to withhold and pay employee Social Security taxes. Additional tax relief related to the COVID-19 pandemic can be found on IRS.gov. For more information, visit the Intuit® Accountants COVID-19 Resource Center, as well as Intuit Tax Pro Center’s articles on the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

2 responses to “Guidance issued on employer deferral of withholding and payment of Social Security tax”

  1. I need information on FFCRA and how to set up on Quickbooks Desktop Enterprise Edition. Also how to show payroll reports that show the credit????