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eESI’s Thoughts:Saturday, the President issued an executive memorandum regarding a payroll tax delay. The memorandum directs the Secretary of the Treasury to implement a delay of certain employees’ obligations to pay social security taxes. The payroll tax provision requires guidance to be issued by the Department of Treasury. eESI has determined that until further guidance is issued from the IRS, eESI will not be participating in the executive order, as participation is optional. As the rules are updated, we will send a follow-up correspondence. If your company has a specific business case for wanting to participate, please contact your Strategic Business Consultant to speak through those details. Below is a summary of the key provisions of the memorandum:
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It is important to keep in mind that Congress and the Trump Administration are still negotiating on a potential COVID-19 relief measure and that a compromise bill could supersede the President’s actions. As this situation becomes clearer, we will update you on what to expect and what actions to take.
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