MIT Has Elected Not to Participate in the Voluntary Payroll Tax Deferral
On August 8, an Executive Order was issued allowing employers to defer certain payroll taxes for the remainder of this calendar year. The Executive Order was implemented by the IRS on August 28 in Notice 2020-65. Specifically, employers have the option to postpone for the remainder of the year the collection and deposit of its employees’ share of Social Security taxes (generally 6.2 % of wages) for employees making less than $4,000 in a biweekly payroll period. Employees who have their Social Security taxes deferred during this period would be required to have an additional 6.2% (a total of 12.4%) of Social Security tax withheld from their pay from January 1, 2021 through April 30, 2021, until the deferred taxes were collected in full.
Consistent with our understanding of the approach taken by our peer schools that have addressed this issue, and to avoid potential confusion and undue burden on our employees, MIT has elected not to participate in the voluntary deferral and will continue to collect payroll Social Security taxes on behalf of all employees.
If you have any questions, please contact the HR/Payroll Service Center.