Treasury Issues Guidance on Payroll Tax Holiday
The Department of the Treasury issued guidance on the Aug. 8, 2020 Presidential Executive Order that defers an employer’s obligation to withhold, deposit, and pay the employee’s portion of the payroll tax on wages earned between Sept. 1, 2020 and Dec. 31, 2020.
The Department of the Treasury issued guidance on the Aug. 8, 2020 Presidential Executive Order that defers an employer’s obligation to withhold, deposit, and pay the employee’s portion of the payroll tax on wages earned between Sept. 1, 2020 and Dec. 31, 2020.
NADA – Late yesterday, the Department of the Treasury issued guidance on the Aug. 8, 2020 Presidential Executive Order that defers an employer’s obligation to withhold, deposit, and pay the employee’s portion of the payroll tax on wages earned between Sept. 1, 2020 and Dec. 31, 2020.
The order, which does not require employers to withhold this amount, generally applies to employees who earn less than $104,000 per year ($4,000 per bi-weekly pay period). If employers withhold this amount, it would become due to the IRS during the period Jan. 1, 2021 to April 30, 2021, and employers are permitted to “make arrangements to otherwise collect the total Applicable Taxes from the employee.”
Dealers are encouraged to discuss this matter with their tax advisor.
Read: Kelley Blue Book Names 10 Most Awarded Cars & Most Awarded Brands of 2020
Originally posted on Auto Dealer Today
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