On Saturday, August 8, 2020, President Trump signed an executive order directing the Treasury Department to defer the withholding, deposit, and payment of certain employee payroll taxes for the period beginning September 1, 2020 and ending December 31, 2020. The executive order is not mandatory, and organizations can choose whether to participate.
After careful assessment, Guthrie leadership has decided this is not an option that would benefit our employees. It would, in fact, have an adverse impact on employees once the repayment of the delayed taxes begins in January 2021. This decision was made after a thorough review of the program’s details, including:
- This is a deferral program, not a forgiveness program – employees will still be required to pay the taxes.
- Payroll taxes that are deferred must be repaid between January 1, 2021 and April 30, 2021, resulting in withholding of regular 2021 payroll taxes and repayment of the deferred 2020 payroll taxes simultaneously – causing an additional burden on the employee at that time.
- The deferral relates only to the employee’s portion of Social Security payroll taxes (6.2%) for those earning less than $4,000 pre-tax during a bi-weekly pay period.
We feel that it is important to share this information with you so that everyone is informed about the details of the program and Guthrie’s decision. If you have additional questions or concerns, please contact Michele Sisto at 570-887-4625 or Michele.Sisto@guthrie.org.