On August 8, 2020, President Trump issued an executive order regarding the deferral of payroll tax obligations in light of the ongoing COVID-19 disaster. On August 28, 2020, the IRS released a notice providing guidance to allow employers to suspend the withholding, deposit and payment of the employees’ share of social security taxes on wages paid that are less than $4,000 per bi-weekly pay period between September 1 and December 31, 2020.
In 2021, employers will then be required to withhold the deferred amount from employee’s wages between January 1, 2021 and April 30, 2021. The deferred amounts must to be re-paid by April 30, 2021 or the IRS will assess interest and penalties.
The IRS guidance provides employers the option of whether or not to adopt this deferral. Lawrence University has opted out of this order at this time. We will keep you informed if any changes occur. If you have any questions please contact the Human Resources & Payroll Department.