Over the weekend, the Internal Revenue Service (IRS) and Department of Treasury issued guidance which implements President Trump’s executive order signed on August 8 allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax.
According to the IRS, employers can defer the withholding, deposit, and payment of payroll taxes on wages paid starting Sept. 1, 2020, through Dec. 31, 2020.
The employee payroll tax deferral applies to any employee whose pretax wages or compensation are less than $4,000 during a bi-weekly pay period, with each pay period considered separately. No deferral is available for any payment to an employee of taxable wages of $4,000 or above for a bi-weekly pay period.
The due date for withholding and payment of these taxes is postponed until the period beginning Jan. 1, 2021, and ending April 30, 2021.
DOL Issues Opinion Letters on Fair Labor Standards Act
In addition, the U.S. Department of Labor issued three new opinion letters today that address compliance issues related to the Fair Labor Standards Act (FLSA). These letters are written by the Department’s Wage and Hour Division (WHD) and provide the agency’s interpretation on how a particular law applies in specific circumstances presented by the person or entity that requested the letter.
FLSA2020-12: This letter provides an agency opinion concerning compliance with the FLSA minimum wage requirements when reimbursing hourly, nonexempt delivery drivers for business-related expenses incurred while using their personal vehicles during the course of employment.
FLSA2020-13: This letter provides an agency opinion on whether part-time employees who provide corporate-management training and are paid a day rate with additional hourly compensation qualify for the learned professional exemption and the highly compensated employee test under Section 13(a)(1) of the FLSA.
FLSA2020-14: This letter provides an agency opinion on whether employees’ hours must fluctuate above and below 40 hours per week to qualify for the fluctuating workweek method of calculating overtime pay. WHD concludes that an employee’s work hours do not have to fluctuate above and below 40 hours per workweek for an employer to be able to use the fluctuating workweek method of calculating overtime pay.
For any questions, please contact Director of Government Affairs Kevin McKenney at email@example.com.