On August 8, 2020, President Trump issued an executive order that directs the Department of the Treasury to exercise its authority to temporarily suspend the withholding, deposit, and payment of the employees’ share of the payroll tax from September 1, 2020 through the end of the year. The order applies to employees who make less than $104,000 per year. While Treasury Secretary Mnuchin has stated that the suspension of the payroll tax will be optional, Treasury has not yet issued important details about the payroll tax holiday.
KADA will provide additional information after the Treasury guidance is issued. In the interim, the dealer accounting firm Baker Tilly has provided general guidance on how it believes dealers should approach the matter.
