A Presidential Memorandum has authorized the deferral of the employee share of the social security tax of 6.2% for the period Sept 1, 2020 to December 31, 2020. This is a voluntary program for the employer, and is only a deferral not a forgiveness of the tax. Employers are responsible for paying the deferred tax between Jan 1, 2021 and April 30, 2021 even if the employees no longer work for the company. Employees that make more than $104,000 are not eligible for the program. This is a great way to increase take home pay now for your employees while they are dealing with this crisis. In 2021, the employees will have their take home pay reduced by the pay back.
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