News Update: The Treasury Department has issued its official guidance on the 2020 payroll tax relief that President Trump put into action on August 8, 2020 in his Presidential Memorandum.
Why this is important:
- Employees will request the deferment of their Social Security taxes.
- Companies will look to comply with this Memorandum & IRS Guidance and implement this change in their payroll application.
- Companies will also need to analyze social security taxable wages by pay period to determine eligibility.
This on-demand webinar discusses how to implement and address this change in Sage HRMS and also review the draft changes to Form 941. We provide guidance to help our valued customers who might be considering implementation of this deferral program. There are some questions about how to offer this to employees, how employees should elect whether they want this deferral or not.
We know that it is optional for employers, although it is pretty clear employees will have an opinion about this. It is pretty hard for an employer to implement this deferral without an employee-by-employee conversation. Do we default people in? Do we default people out?