COVID-19: Presidential Order Deferring Individual Payroll Taxes [Updated September 2, 2020] [open pdf - 626KB]
From the Document: "On August 8, 2020, President Trump issued a presidential memorandum ordering the deferral of individual payroll tax obligations from September 1, 2020, through December 31, 2020. The deferral is for employees with biweekly compensation of generally less than $4,000. The memorandum directed the Secretary of the Treasury to issue guidance to implement this policy. On August 28, 2020, guidance was provided in IRS [Internal Revenue Service] Notice 2020-65. A September 2, 2020, letter to the Government Accountability Office (GAO) asks for an expedited determination if the guidance in IRS Notice 2020-65 constitutes a rule according to the Congressional Review Act in an effort to force a congressional vote to overturn the deferral. This Insight discusses the individual payroll tax deferral outlined in the memorandum, compares this order to the business payroll tax deferral provided in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136), and addresses questions related to potential economic effects."
CRS Insight, IN11488
Congressional Research Service: https://crsreports.congress.gov/