{"id":1227,"date":"2020-09-01T16:00:11","date_gmt":"2020-09-01T16:00:11","guid":{"rendered":"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/?p=1227"},"modified":"2022-08-10T16:52:42","modified_gmt":"2022-08-10T20:52:42","slug":"irs-issues-guidance-on-social-security-tax-deferral","status":"publish","type":"post","link":"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/2020\/09\/01\/irs-issues-guidance-on-social-security-tax-deferral\/","title":{"rendered":"IRS Issues Guidance on Social Security Tax Deferral"},"content":{"rendered":"<p>On August 28, the <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/n-20-65.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">IRS issued Notice 2020-65<\/a> to provide guidance on the President\u2019s decision to allow deferral of the employee portion of Social Security taxes owing for the rest of 2020 for employees earning up to $104,000 per year.<\/p>\n<p>Under the Notice, collection and payment of the employee share of these taxes for the period from September 1 through December 31 of 2020 is postponed until the first quarter of 2021\u2014January 1 through April 30.\u00a0 The employer (called the Affected Taxpayer in the Notice) must withhold and pay the deferred amounts from wages paid between January 1 and April 30, 2021. If unpaid, interest, penalties and additions to tax will begin to accrue on May 1, 2021.<\/p>\n<p>If the employee is no longer earning wages from this employer, this Affected Taxpayer, the <a href=\"https:\/\/fortune.com\/2020\/08\/31\/trump-payroll-tax-holiday-employers-employees-faq\/\" target=\"_blank\" rel=\"noopener noreferrer\">employer is on the hook<\/a> to pay the amount of taxes deferred for that employee.\u00a0 The Notice says, \u201cIf necessary, the Affected Taxpayer may make arrangements to otherwise collect the total Applicable Taxes from the employee.\u201d<\/p>\n<p>As in <a href=\"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/2020\/08\/20\/social-security-taxes-could-be-deferred-for-the-rest-of-2020\/\" target=\"_blank\" rel=\"noopener noreferrer\">our previous post<\/a>, we suggest you consult with your payroll service to determine how material the value of the deferrals may be when balanced against the costs of implementing such deferrals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On August 28, the IRS issued Notice 2020-65 to provide guidance on the President&rsquo;s decision to allow deferral of the employee portion of Social Security taxes owing for the rest of 2020 for employees earning up to $104,000 per year. Under the Notice, collection and payment of the employee share&hellip;<\/p>\n","protected":false},"author":1,"featured_media":687,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false,"_links_to":"","_links_to_target":""},"categories":[275,10],"tags":[21,22],"class_list":["post-1227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-covid-19-resources","category-taxes","tag-irs","tag-social-security"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>IRS Issues Guidance on Social Security Tax Deferral - Don\u2019t Tax Yourself<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bowditch.com\/estateandtaxplanningblog\/2020\/09\/01\/irs-issues-guidance-on-social-security-tax-deferral\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IRS Issues Guidance on Social Security Tax Deferral - Don\u2019t Tax Yourself\" \/>\n<meta property=\"og:description\" content=\"On August 28, the IRS issued Notice 2020-65 to provide guidance on the President&rsquo;s decision to allow deferral of the employee portion of Social Security taxes owing for the rest of 2020 for employees earning up to $104,000 per year. 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