Office of Business Operations

Employee Social Security Tax Deferral

3 years 6 months ago

The IRS has issued guidance on the Presidential Memorandum allowing employers to defer the withholding and depositing of the employee portion of Social Security taxes on applicable wages paid between September 1 and December 31, 2020.   A deferral would not eliminate the responsibility to pay these taxes.  The deferred amount would need to be withheld from employee wages paid between January 1 and April 30, 2021. Implementing the deferral would put an increased tax burden on employees in early 2021, which would have a negative impact to your take-home pay.  After consultation with Board leadership, the Executive Director, and institution leaders, the universities will not be participating in the payroll tax deferral program.