President Trump has been trying to get an employee payroll tax cut for months but instead, it is a payroll tax deferral. The taxes would be required to be paid sometime after the end of the year.
Employers are not required to comply with the payroll tax deferral according to the IRS. Consequently, many employers will be reluctant to stop withholding the tax because they will ultimately be responsible for the taxes if Congress doesn’t change the act.
The Cares Act allows employers to defer their payment of the 6.2 % share of the Social Security tax required to be made from March 27 through December 31, 2020. The 941 form has been revised by the IRS to allow the change in taxes.
