The National Council of Nonprofits provided the following information on the executive order that was issued by the President on August 8.
“The Department of Treasury and Internal Revenue Service has issued a three-page guidance implementing the Presidential Memorandum allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax. Notice 2020-65, posted on August 31 on IRS.gov, makes relief available for employers and generally applies to wages paid starting Sept. 1, 2020, through Dec. 31, 2020. The employee Social Security tax deferral may apply to payments of taxable wages to an employee that are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period. See the IRS news release.”
The Council also provided this information from a law firm further describing the IRS guidance.
Foraker and the Council will continue to follow this issue and share additional information when we receive it.