The IRS on August 28 issued Notice 2020-65 that will allow employers to suspend withholding and paying eligible employees’ Social Security payroll taxes as part of COVID-19 relief.
This payroll tax suspension period run from Sept. 1 through Dec. 21, 2020. It applies only to employees whose wages are less than $4,000 for a biweekly pay period.
Companies that suspend collection of employees’ payroll tax would collect extra amounts from workers’ paychecks from Jan.1 through April 30, 2021 to repay the tax obligation.
[SOURCE: SHRM]