The U.S. Treasury Department and IRS have released guidance on President Trump’s memorandum to allow employers to defer certain payroll taxes beginning tomorrow, September 1. The deferral is available with respect to any employee whose wages or compensation during any bi-weekly pay period generally are less than $4,000, calculated on a pre-tax basis, or the equivalent amount with respect to other pay cycles. Payroll taxes deferred between September 1 – December 31, 2020 will be due between January 1 – April 30, 2021. Many companies are opting not to participate, so as to not essentially present a bill to employees when the deferred taxes become due.
