Employers can defer payroll taxes for next 4 months, but employees will have to pay later

By: Daniel Moore

WASHINGTON — After a month with no deal from Congress to extend COVID-19 relief programs, employers will have the option beginning on Tuesday to defer withholding of certain payroll taxes for the next four months, a move by President Donald Trump intended to unilaterally provide benefits after talks among lawmakers broke down.

Under guidance published Friday by the Internal Revenue Service, employers have the option to temporarily halt withholding and paying a 6.2% tax on employees that funds Social Security benefits.

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