On Friday, August 28, the Internal Revenue Service (IRS) and Treasury Department issued guidance on a potential employee payroll tax deferral directed by a presidential memorandum released on August 8, 2020. The deferral provided employers the option to defer withholding the employee portion of social security tax payments from September 1 through December 31, 2020, with the deferred taxes to be repaid from January 1 through April 30, 2021. The deferral applied only to employees whose wages are less than $2,000 for a weekly pay period and to salaried workers earning less than $104,000 per year.
After consulting with tax, legal, and compensation experts, the University has decided not to participate in the optional deferral. Since this program only postpones tax payments, the University chose this option in an effort to safeguard our employees from higher withholdings beginning January 2021.
If you have any questions, please contact the Payroll Service Center at 315-443-4042 or firstname.lastname@example.org.