During an Internal Revenue Service monthly payroll teleconference today, Kelly Morrison-Lee, an agency attorney, confirmed that the payroll tax deferral is optional at the discretion of the employer.
This confirms that employers, not employees, have the choice of whether or not to implement the tax deferral. Therefore, an employer is not obligated to implement the deferral for employees who wish to opt in.
No further written guidance has been issued, but this does confirm our interpretation.
Brownstein’s analysis on President Trump’s executive directives, which is updated regularly, can be found here. Please contact a member of the Brownstein Tax Policy Group with any questions.
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