Beginning September 1st, employers are given the option of implementing an executive order, issued by President Trump, that would defer the tax (6.2%) employees pay toward Social Security through December 31st. As of this writing, this is only a deferral of the tax — NOT forgiveness of the tax owed. Congress would need to act to forgive or eliminate this Social Security tax. Taxes would be owed and paid January through April.
Due to the fact that the tax is only deferred and the tax would still be collected, Central Rivers AEA has chosen NOT to implement this executive order, unless Congress takes formal action to forgive the tax. We feel it is in the best interest of our employees to continue the normal tax withholdings and avoid a greater tax burden on employees at the beginning of 2021. Please reach out to Michael Kalvig if you have any questions.