Memorandum on Deferring Payroll Tax Obligations. The White House announced Executive Orders on August 8 pertaining to deferring certain payroll tax obligations.
Currently, we are awaiting official guidance and instructions from the IRS. Watch this blog post for updates as they are available.
UPDATE 8/21/2020: We continue to await IRS guidance but a list of common concerns has been noted on Document 2702245.1. Please review.
UPDATE 9/01/2020: On Friday, August 28, the IRS released Notice 2020-65 outlining their guidance on the Presidential Memorandum.
Oracle PeopleSoft will be delivering a solution for the Presidential Memorandum on Deferring Payroll Tax Obligations for Payroll for North America with Tax Update 20-D/PI36 posting on October 16, 2020. We are tracking this solution on Base Bug 31832268.
Oracle PeopleSoft Payroll for North America plans to deliver new functionality to calculate and track the deferred employee portion of the Social Security taxes on wages and tips using two new tax classes. The deferred tax amounts will not be withheld from the employees’ wages. The deferred tax amounts will be printed on the employee check and advice wage statements (printed and self-service) as negative tax amounts so the employee can see that the employee portion of the Social Security tax was not withheld from their check. Customers will have the flexibility to identify which employees are qualified for the deferral. The solution will deliver a report that will assist customers in determining whether these employees have taxable wages within a pay period that are less than the prescribed threshold amounts.