Stanford has decided to forgo implementation of the federal government’s optional payroll tax deferment program.
An executive memorandum issued in August allowed employers to postpone withholding of Social Security taxes from Sept. 1-Dec. 31, 2020 for employees whose pretax income is less than $104,000 annually. Following the end of this program, these employees would be responsible for repaying these taxes over the first four months of 2021. That would result in a decrease in their take-home pay during this period, as withholding would cover both deferred taxes from 2020 plus ongoing taxes for 2021.
Because of the financial burden and the potential for other complications for our employees, Stanford has chosen not to participate in this temporary, voluntary program.
If you have any questions or concerns, please feel free to reach out to the team by submitting a support request.
