Executive Memorandum: Payroll Tax Deferral
- Deferral of the employee portion of Social Security taxes (6.2%) which are payable between September 1st and December 31st.
- The order does not indicate that the deferred tax will be forgiven. However, the order does instruct the Secretary of the Treasury to explore avenues which would eliminate the obligation to pay the taxes deferred pursuant to this order.
- The deferral is available to any employee whose pre-tax wages payable during any bi-weekly pay period is generally less than $4,000 or the equivalent amount with respect to other pay periods.
- The following items are still unknown:
- Is this relief optional or required? Is there an election each employee must make?
- If the deferred amounts are not forgiven, what funds would be used to relieve the obligation? Who is responsible for the future payment, the employee or employer? What if the employee is no longer employed?
- Does the deferral apply to self-employed taxpayers?
- When would the deferred payments become due?
Executive Memorandum: Student Loans
- The deferment of student loan payments was set to expire on September 30th. This program has been extended to last thought December 31, 2020.
- This order applies to student loans held by the Department of Education.
Executive Order: Housing
- The order requests for the Secretary of the Treasury and the Secretary of Housing and Urban Development to identify resources which may be used to provide assistance to renters and homeowners who are struggling to make their rent or mortgage payments. The order requests that action be taken to promote the ability of renters and homeowners to avoid eviction or foreclosure.
- The order does not specifically put in place a moratorium on evictions or foreclosures.
This is a developing story. Last updated August 11th, 2020.