On August 8, President Trump issued an executive order allowing employers to defer withholdings and payment of an employee’s portion of the Social Security tax for certain employees.
The Treasury Department and Internal Revenue Service issued guidance for employers on how to properly carry out the order. Based on the news release from the IRS, it appears that employers are not required, but do have the option, to make the deferral available to employees that meet the wage eligibility.
AWC cautions that cities may want to collect from employees written authorization to defer Social Security tax collection and acknowledgement that the full amount of the tax will be deducted from their pay either at the end of the deferral period or in a final paycheck. City officials should consult with the city attorney, HR and payroll staff regarding the best way to implement the deferral.
MRSC recently put out some helpful information on this topic.