Southern Methodist University will not implement the payroll tax deferment program announced by Presidential Memorandum on August 8, 2020.
The executive action is optional, allowing employers to postpone the collection of payroll taxes, specifically an employee’s portion of Social Security taxes, for affected employees. The action applies to wages paid to affected employees beginning on September 1, 2020 and ending on December 31, 2020. Affected employees are defined as employees generally making less than $4,000 per biweekly pay period. Currently the order also indicates that the affected employees will be responsible for withholding and paying back these taxes before May 1, 2021, or be subject to interest and penalties.
SMU will continue to collect payroll taxes on behalf of all employees to reduce possible confusion, undue hardships, or other difficulties during the filing of taxes for 2020 by employees next year.
When more information becomes available that clarifies many of the administrative questions pertaining to the payroll tax deferment, SMU may reconsider implementation.