![]() The IRS notice defines the employer as the “Affected Taxpayer.” Thus, the notice itself supports the conclusion that it is the employer’s right to choose to defer or not, and does not appear to create any right for the employee to demand an employer defer the withholding. ![]() Section 7508A gives the IRS power to postpone deadlines, but does not give the IRS the power to prohibit employers from timely withholding and paying taxes. Even if one of your employees insists that they want you to defer the withholding, you, as the employer, are not required to do so. Treasury Secretary Mnuchin has informally indicated that he believes his department cannot force employers not to withhold, which is consistent with Section 7508A of the Internal Revenue Code. No, nothing in the memorandum from the President or the notice from the IRS indicates that deferral is mandatory. The President’s memorandum and the notice have caused significant confusion for employers about what they need to do, if anything.ĭo I, as an employer, have to implement deferred withholding? ![]() 28, 2020, the Department of Treasury and Internal Revenue Service issued Notice 2020-65, allowing employers to defer payroll tax withholding, but requiring all amounts not withheld to be paid between Jan. This memorandum is separate from the ability of employers to defer their own payroll tax obligations under the CARES Act and is intended to provide stimulus to the economy by temporarily boosting take-home wages. 8, 2020, President Trump issued a memorandum calling for the Secretary of Treasury to allow for the deferral of payroll tax withholding on the employee portion of certain payroll taxes.
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