Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster (Presidential document), 85 FR 49587, 2020-08-13, FR Doc. 2020-17899

Summary

A presidential memorandum to the Secretary of the Treasury on deferring payroll tax obligations, dated August 8, 2020. It was published in the Federal Register on August 13, 2020 (Vol. 85, No. 157) as FR Doc. 2020-17899. It directs the Secretary to use authority under 26 U.S.C. 7508A to defer the withholding, deposit and payment of the tax imposed by 26 U.S.C. 3101(a) on wages or compensation paid from September 1, 2020, through December 31, 2020. The deferral applies to employees whose wages or compensation payable during a bi-weekly pay period is generally less than $4,000, calculated on a pre-tax basis, and is to be made without penalties or interest. Section 4 directs the Secretary to explore avenues, including legislation, to eliminate the obligation to pay the deferred taxes.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster (Presidential document), 85 FR 49587, 2020-08-13, FR Doc. 2020-17899.” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/deferring-payroll-tax-obligations-in-light-of-the-ongoing-covid-19-dis-a2ee0dee9a/, SHA-256 40b32b7a9a423a9097f905b9881bbfeb68ee8506f86580661a81042141a88f70.

Full text

Federal Register / Vol. 85, No. 157 / Thursday, August 13, 2020 / Presidential Documents 49587

Presidential Documents

Memorandum of August 8, 2020

Deferring Payroll Tax Obligations in Light of the Ongoing
COVID–19 Disaster

Memorandum for the Secretary of the Treasury

By the authority vested in me as President by the Constitution and the
laws of the United States of America, it is hereby ordered as follows:
Section 1. Policy. The 2019 novel coronavirus (COVID–19) that originated
in the People’s Republic of China has caused significant, sudden, and unex-
pected disruptions to the American economy. On March 13, 2020, I deter-
mined that the COVID–19 pandemic is of sufficient severity and magnitude
to warrant an emergency declaration under section 501(b) of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121–
5207, and that is still the case today. American workers have been particularly
hard hit by this ongoing disaster. While the Department of the Treasury
has already undertaken historic efforts to alleviate the hardships of our
citizens, it is clear that further temporary relief is necessary to support
working Americans during these challenging times. To that end, today I
am directing the Secretary of the Treasury to use his authority to defer
certain payroll tax obligations with respect to the American workers most
in need. This modest, targeted action will put money directly in the pockets
of American workers and generate additional incentives for work and employ-
ment, right when the money is needed most.
Sec. 2. Deferring Certain Payroll Tax Obligations. The Secretary of the Treas-
ury 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:
(a) The deferral shall be made available with respect to any employee
the amount of whose wages or compensation, as applicable, payable during
any bi-weekly pay period generally is less than $4,000, calculated on a
pre-tax basis, or the equivalent amount with respect to other pay periods.
(b) Amounts deferred pursuant to the implementation of this memorandum
shall be deferred without any penalties, interest, additional amount, or addi-
tion to the tax.
Sec. 3. Authorizing Guidance. The Secretary of the Treasury shall issue
guidance to implement this memorandum.
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.
Sec. 5. General Provisions. (a) Nothing in this memorandum shall be con-
strued to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency,
or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This memorandum shall be implemented consistent with applicable
law and subject to the availability of appropriations.

VerDate Sep<11>2014 19:01 Aug 12, 2020 Jkt 250250 PO 00000 Frm 00001 Fmt 4790 Sfmt 4790 E:\FR\FM\13AUO1.SGM 13AUO1
49588 Federal Register / Vol. 85, No. 157 / Thursday, August 13, 2020 / Presidential Documents

(c) This memorandum is not intended to, and does not, create any right
or benefit, substantive or procedural, enforceable at law or in equity by
any party against the United States, its departments, agencies, or entities,
its officers, employees, or agents, or any other person.
(d) You are authorized and directed to publish this memorandum in
the Federal Register.

THE WHITE HOUSE,
Washington, August 8, 2020

[FR Doc. 2020–17899
Filed 8–12–20; 11:15 am]
Billing code 4811–33–P

Trump.EPS</GPH>
VerDate Sep<11>2014 19:01 Aug 12, 2020 Jkt 250250 PO 00000 Frm 00002 Fmt 4790 Sfmt 4790 E:\FR\FM\13AUO1.SGM 13AUO1

File and source

File: FR-2020-08-13_2020-17899.pdf
Size: 178,609 bytes
SHA-256: 40b32b7a9a423a9097f905b9881bbfeb68ee8506f86580661a81042141a88f70
Our copy: FR-2020-08-13_2020-17899.pdf
Original: www.govinfo.gov