Categories: U.S. Treasury

Statement by a Treasury Spokesperson on the Funding of the Social Security Trust Funds and Payroll Tax Deferral

WASHINGTON – An August 8, 2020, Presidential Memorandum directed the Secretary of the Treasury to use his authority to allow employers to defer the withholding, deposit, and payment of certain payroll taxes for employees who are paid less than $4,000 on a bi-weekly basis. The payroll taxes eligible for deferral are those imposed on wages paid between September 1, 2020 and December 31, 2020.  Under guidance issued by the Treasury Department and the Internal Revenue Service, any deferred payroll taxes must be repaid no later than April 30, 2021. 

The Treasury Department will continue to make regular transfers to the Social Security Trust Funds based on an annual schedule developed by Treasury and the Social Security Administration earlier this year.  Treasury does not have reliable information to revise that transfer schedule because employers’ regular tax payments to Treasury are not differentiated between income taxes and payroll taxes, and the payroll tax deferral is elective.  We do not expect deferral to impact the Social Security Trust Funds because the deferral is temporary and all deferred taxes must be repaid.  Repayment of the deferred taxes must start no later than January 1, 2021, and all deferred taxes must be fully repaid by April 30, 2021.

The deferral will have no impact whatsoever on current or future payments received by Social Security recipients, and the Trump Administration remains fully committed to the integrity of the Social Security Trust Funds.

IR Press

Share
Published by
IR Press

Recent Posts

Treasury Issues Final Rule Expanding CFIUS Coverage of Real Estate Transactions Around More Than 60 Military Installations

WASHINGTON – Today, the U.S. Department of the Treasury (Treasury), as Chair of the Committee…

4 days ago

U.S. Department of the Treasury’s CDFI Fund and Federal Housing Finance Agency Collaborate to Bolster CDFI Access to Capital

WASHINGTON—Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) and…

4 days ago

Report on U.S. Portfolio Holdings of Foreign Securities at Year-End 2023

Washington – The findings from the annual survey of U.S. portfolio holdings of foreign securities…

5 days ago

READOUT: U.S. Department of the Treasury Hosts Roundtable Discussion on the Financial Sector’s Response to Recent Hurricanes

WASHINGTON – The U.S. Department of the Treasury hosted a roundtable on October 30 with…

5 days ago

READOUT: Sixth Meeting of the Financial Working Group Between the United States and the People’s Republic of China

WASHINGTON – The United States and the People’s Republic of China held the sixth meeting…

5 days ago

Treasury Sanctions Key Members of La Linea, a Group Involved in Trafficking Fentanyl into the United States

WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned…

5 days ago