FICA and Medicare Tax Deferral Revisited –
We still do not have many specifics on this. Our understanding is that you have a choice on whether or not you defer the FICA and Medicare payroll tax for staff who make less than $4,000 biweekly. We continue to think this is a very bad idea for you and your staff. The deferral currently has to be repaid between January 1, 2021 and April 30, 2021. This is repaid by your staff according to an update by the IRS. This means that staff’s deferral will go from 7.65% during that time to 15.3% from January to April. This could be extremely painful for them.
Unclear to us is if you have an employee who requests the deferral. Do you have to honor that? Currently, we do not know. Please stay tuned. . . AGAIN!