Source: AGSAFE, 9/10/20
 

On August 8, 2020, President Trump issued an Executive Order allowing employers to withhold the employee’s portion of the social security tax owed to the Federal Government. More recently, the Secretary of Treasury issued the attached Guidance document. However, the Guidance is not very clear on a number of issues and law firm, Barsamian & Moody, has prepared an excellent Memorandums dated September 4, 2020 and September 8, 2020, advising employers of the contents of the Treasury’s Guidance, and has also provided a document for employees to sign for the deferral of the employee’s social security taxes, along with a check-off for “opting-in” or “opting-out” of the program. Please note, the program is optional and up to the discretion of the employer to implement or not.

It is recommended that you consult with your CPA or financial counselor before implementing this program. As per the Guidance, the deferral applies to all payroll periods commencing September 1, 2020, through December 31, 2020.

AgSafe would like to thank VCAA and the law firm of Barsamian & Moody for their contribution of this important Memorandum to assist you in making the best decision for your employees and your business.