7/5/2023 0 Comments Payroll tax deferral guidanceFinally, the guidance makes clear that employers are required to pay these taxes to the federal government, but goes on to state that employers “may make arrangements to otherwise collect the from the employee.” “Applicable wages” are defined as those wages paid to an employee on pay dates between Septemand December 31, 2020, “but only if the amount of such wages or compensation paid for a bi-weekly pay period is less than the threshold amount of $4,000 or the equivalent threshold amount with respect to other pay periods.” The guidance specifies that applicable wages are determined on a pay period by pay period basis. Treasury’s guidance makes clear that an employer may elect to defer the payment of the employee portion of these taxes on “applicable wages” until next year, when they would be owed in installments between Januand April 30, 2021. The memorandum allows employers to defer payment of the employee portion of these payroll taxes for workers earning less than $4,000 on a biweekly basis (roughly $104,000 annually). That memorandum allowed for the deferral of the employee portion of federal payroll taxes (6.2% for Social Security) from Septemuntil December 31, 2020. This guidance stems from a presidential memorandum issued earlier in the month authorizing employers to defer payment of these taxes. Department of the Treasury issued guidance for employers with respect to the deferral of the employee portion of certain payroll taxes. Littler Inclusion, Equity and Diversity Playbook.Littler Investigation Toolkit for Employers.We’re ready for your tomorrow – because we’re built for it.Global Workplace Transformation Initiative.Littler Restructuring Assessment Solution.General Data Protection Regulation (GDPR).
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