Payroll Tax Deferral Memorandum for COVID-19 Relief

On August 8, 2020, President Trump signed Memorandum 2020-17899 deferring payroll tax obligations for employees earning less than $100,000 annually from September 1 through December 31, 2020. The memorandum directed the Treasury Secretary to defer collection of the employee portion of Social Security taxes during this period. The deferred taxes were to be collected between January 1 and April 30, 2021, meaning affected employees faced larger withholdings in early 2021 rather than a permanent tax reduction.