Executive order defers payroll tax payments

August 10, 2020

President Donald Trump on Saturday, Aug. 8, issued an executive order to defer the withholding, deposit and payment of certain payroll taxes paid from Sept. 1 through Dec. 31.

The presidential memorandum was one of four the president issued on Saturday as congressional negotiators struggle to agree on a bill that extends COVID-19 relief.

The deferral applies to any employee whose pretax wages or compensation during any biweekly pay period generally is less than $4,000.

Treasury is now directed to issue guidance that implements the order and explores ways to ultimately eliminate the obligation to pay the deferred taxes. Learn more.

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