How Can Employers Manage the New Payroll Tax Deferral Regulation!
On Aug. 28, the IRS issued Notice 2020-65, allowing employers to suspend withholding and paying to the IRS eligible employees’ Social Security payroll taxes. But many questions employers have raised were left unanswered.
The payroll tax “holiday,” or suspension period, runs from Sept. 1 through Dec. 31, 2020, and applies only to employees whose wages are less than $4,000 for a biweekly pay period, including salaried workers earning less than $104,000 per year.
Companies that suspend the collection of employees’ payroll tax would collect additional amounts from workers’ paychecks from Jan. 1 through April 30 next year to repay the tax obligation.
Webinar Objectives
It remains uncertain, however, how many private-sector employers will suspend collection of their employees’ Social Security taxes, and if they decide to do so when they could reasonably adjust their payroll systems to stop withholding these taxes.
Employers that use a payroll firm should look for announcements on how the tax holiday will work, including any notices to employees. Given that many September payrolls were already processed in the closing weeks of August, before the guidance came out, “generally it will be shortly after Sept. 1” before Social Security tax withholding could be deferred.
Employers that maintain their own payroll systems may need weeks or months to get the technical work done, so it may be October, November, or even later.
Webinar Agenda
- What is the Payroll Deferral Regulations and who does it impact?
- Why was it developed?
- What do the Payroll Deferral Program benefits and concerns?
- What Federal programs are impacted?
- What is double withholding?
- Why would Employers be against temporary regulations? Can employees still receive tax refunds under the Payroll Deferral Regulations?
- How can payroll providers prepare or respond to the regulation implementation?
- What are the compliance implications?
- Review the draft by the IRS of Form 941 to accommodate the Payroll Tax Deferment Regulations
Who Should Attend
- All Employers
- Business Owners
- Company Leadership
- Compliance professionals
- Payroll Administrators
- HR Professionals
- Compliance Professionals
- Managers/Supervisors
- Employers in all industries
- Small Business Owners
- Large Business Owners
- Company Leadership
- HR professionals
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