IRS Guidance Makes Workers039 Payroll Tax 039Holiday039 Voluntary for Employers

‚ÄčOn Aug. 28, the IRS issued Notice 2020-65, allowing employers to suspend withholding and paying to the IRS eligible employees’ Social Security payroll taxes, but whether employers choose to do so is voluntary. Companies that suspend collection of employees’ payroll tax would collect additional amounts from workers’ paychecks from Jan. 1 through April 30 next year, to repay the tax obligation. At just two-and-a-half double-spaced pages, the Notice 2020-65 provides a minimum of information and leaves many questions to be answered, presumably in follow-up guidance.

It remains uncertain whether many private-sector employers will choose to su

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