9/10/20 | 9:30 am | UT Health San Antonio will not defer payroll taxes
On Aug. 8, President Trump signed an executive memo authorizing employers to defer the withholding and payment of social security taxes (6.2%) for a limited group of employees beginning Sept. 1 through Dec. 31, 2020. The deferred taxes, however, must be repaid by the employee by April 30, 2021 or penalties and interest will be assessed. This means employers must double-up on collecting social security taxes during the first four months of 2021, resulting in less take-home pay for employees in their January through April paychecks.
This deferral option has led to many unanswered questions and much confusion by employees. To better support employees and minimize the concern, consensus has been achieved by UT System entities to opt out of this deferral option because of the lack of guidance and potential hardship it may create for employees with the repayment requirement. Accordingly and as advised, UT Health San Antonio will opt out of the payroll tax deferral and will continue withholding and submitting the employee’s portion of social security taxes.