Human Resources would like to make employees aware that the University will not participate in the voluntary deferred payroll tax option in a recent federal Executive Order.
Pursuant to the Executive Order signed Aug. 8, 2020, employers may choose to defer the withholding of the employee portion of the 6.2% Social Security tax for the period Sept. 1, 2020 through Dec. 31, 2020. The deferral is available to employees whose biweekly compensation is less than $4,000, calculated on a pretax basis. The deferred taxes would then be withheld during the period Jan. 1, 2021 through April 30, 2021. In other words, all else being equal, employee net pay would increase from its current level for the final four months of 2020 and then decrease from its current level during the first four months of 2021, as the employee portion of the Social Security tax would be subject to double withholding in settlement of the deferred taxes.
Please be aware that the University has chosen not to participate in this voluntary deferral. All employee taxes are ultimately withheld and, given the current interest rate environment, the University has determined there would be no economic benefit to employees to defer withholdings. If you have questions, contact Melissia Coffee at email@example.com or (573) 651-6192.