Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster, 49587-49588 [2020-17899]

Agencies

• Executive Office of the President

[Federal Register Volume 85, Number 157 (Thursday, August 13, 2020)]
[Presidential Documents]
[Pages 49587-49588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17899]




                        Presidential Documents 



Federal Register / Vol. 85, No. 157 / Thursday, August 13, 2020 / 
Presidential Documents

[[Page 49587]]


                Memorandum of August 8, 2020

                
Deferring Payroll Tax Obligations in Light of the 
                Ongoing COVID-19 Disaster

                Memorandum for the Secretary of the Treasury

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered as follows:

                Section 1. Policy. The 2019 novel coronavirus (COVID-
                19) that originated in the People's Republic of China 
                has caused significant, sudden, and unexpected 
                disruptions to the American economy. On March 13, 2020, 
                I determined that the COVID-19 pandemic is of 
                sufficient severity and magnitude to warrant an 
                emergency declaration under section 501(b) of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act, 42 U.S.C. 5121-5207, and that is still 
                the case today. American workers have been particularly 
                hard hit by this ongoing disaster. While the Department 
                of the Treasury has already undertaken historic efforts 
                to alleviate the hardships of our citizens, it is clear 
                that further temporary relief is necessary to support 
                working Americans during these challenging times. To 
                that end, today I am directing the Secretary of the 
                Treasury to use his authority to defer certain payroll 
                tax obligations with respect to the American workers 
                most in need. This modest, targeted action will put 
                money directly in the pockets of American workers and 
                generate additional incentives for work and employment, 
                right when the money is needed most.

                Sec. 2. Deferring Certain Payroll Tax Obligations. The 
                Secretary of the Treasury is hereby directed to use his 
                authority pursuant to 26 U.S.C. 7508A to defer the 
                withholding, deposit, and payment of the tax imposed by 
                26 U.S.C. 3101(a), and so much of the tax imposed by 26 
                U.S.C. 3201 as is attributable to the rate in effect 
                under 26 U.S.C. 3101(a), on wages or compensation, as 
                applicable, paid during the period of September 1, 
                2020, through December 31, 2020, subject to the 
                following conditions:

                    (a) The deferral shall be made available with 
                respect to any employee the amount of whose wages or 
                compensation, as applicable, payable during any bi-
                weekly pay period generally is less than $4,000, 
                calculated on a pre-tax basis, or the equivalent amount 
                with respect to other pay periods.
                    (b) Amounts deferred pursuant to the implementation 
                of this memorandum shall be deferred without any 
                penalties, interest, additional amount, or addition to 
                the tax.

                Sec. 3. Authorizing Guidance. The Secretary of the 
                Treasury shall issue guidance to implement this 
                memorandum.

                Sec. 4. Tax Forgiveness. The Secretary of the Treasury 
                shall explore avenues, including legislation, to 
                eliminate the obligation to pay the taxes deferred 
                pursuant to the implementation of this memorandum.

                Sec. 5. General Provisions. (a) Nothing in this 
                memorandum shall be construed to impair or otherwise 
                affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This memorandum shall be implemented consistent 
                with applicable law and subject to the availability of 
                appropriations.

[[Page 49588]]

                    (c) This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by any 
                party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.
                    (d) You are authorized and directed to publish this 
                memorandum in the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, August 8, 2020

[FR Doc. 2020-17899
Filed 8-12-20; 11:15 am]
Billing code 4811-33-P