ABSTRACT

COVID-19: Presidential Order Deferring Individual Payroll Taxes [Updated January 6, 2021]   [open pdf - 637KB]

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 was 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. This Insight discusses the individual payroll tax deferral outlined in the memorandum, including issues related to repayment of deferred amounts; 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."

Report Number:
CRS Insight, IN11488
Author:
Publisher:
Date:
2021-01-06
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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