Employers May Defer Payment of Social Security Tax Until 2021 for Select Employees
In order to provide Americans economic relief during the COVID-19 pandemic, President Trump signed an executive order that provides an option for employers to defer the payment of an employee’s share of social security tax until 2021.
Specifically, the order allows employers to defer deducting the employee’s share of social security tax for eligible employees from September 1, 2020 to December 31, 2020. To be eligible, the wages paid to an employee in a bi-weekly pay period must fall below $4,000. If an employer opts to defer the tax payment, it must be repaid between January 1, 2021 and April 30, 2021 to avoid interest and penalties that begin to accrue on May 1, 2021.
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