Commissioners Court Meeting

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Meeting Date:	09/14/2020
IRS Notice 2020-65
Submitted for:	Margie Gomez	Submitted By:	Margie Gomez
Department:	Human Resources

Subject:

Discussion and possible action to exclude the County from IRS Notice 2020-65, allowing employers to temporarily defer withholding the employee’s portion of Social Security payroll taxes for pay periods starting Sept. 1 through Dec. 31, 2020, as directed by an Executive Order issued by President Donald Trump.

Issue: On Aug. 28, 2020, the IRS issued Notice 2020-65, allowing employers to temporarily defer withholding the employee’s portion of Social Security payroll taxes for pay periods starting Sept. 1 through Dec. 31, 2020, as directed by an Executive Order issued by President Donald Trump. Unless Congress passes additional legislation forgiving the repayment of this tax deferral, employees would be required to repay the taxes by doubling the employee's Social Security tax paycheck withholding to 12.4 percent during the first four months of 2021.

Solution: Court action excluding the County from IRS Notice 2020-65 will eliminate the administrative challenges of implementing changes to our payroll software on such short notice, coupled with feedback from employees with concerns about the significant reduction in take-home pay that would occur during the first four months of 2021.

Result: This will eliminate the administrative challenges of implementing changes to our payroll software on such short notice and feedback from employees with concerns about the significant reduction in take-home pay that would occur during the first four months of 2021.

Background:

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Previous Court Action:

Fiscal Impact

Budget Account Number:	N/A
Funding Source:	N/A
Balance:	N/A
Financial Impact:
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