Can someone break it down for us old folks? The codes mean absolutely nothing to us and doesn’t affect us but we still want to know what’s going on. I did payroll for years but I don’t even understand what’s changing...and I have a hunch it’s Greek to a lot of current employees:
“”to defer the withholding, deposit, and payment of the tax imposed by 26 U.S.C. 3101(a)”” ~~~ which means WHAT taxes - INCOME or FICA (Social Security) all of which get deposited to the feds or states after a payroll?? We can’t get it in English? I bet the president would have trouble deciphering the meaning of it!!!
“”The Secretary of the Treasury is hereby directed to use his authority pursuant to 26 U.S.C. 7508A to defer the withholding, deposit, and payment of the tax imposed by 26 U.S.C. 3101(a), and so much of the tax imposed by 26 U.S.C. 3201 as is attributable to the rate in effect under 26 U.S.C. 3101(a), on wages or compensation, as applicable, paid during the period of September 1, 2020, through December 31, 2020, subject to the following conditions””
26 USC 3201 is the Railroad Retirement tax.
I don't see anything in there about the employer's half or self-employment tax which covers both the employee and employer parts.
Note that these are only deferred. According to the Memo: Sec. 4. Tax Forgiveness. The Secretary of the Treasury shall explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum.
So you might end up owing it all on April 15, 2021.