Question:

What payroll taxes are affected?

Answer:

Employee Social Security tax withholding.  Per the memorandum, the tax imposed by 26 U.S.C. 3101(a) – (which reads: (a) Old-age, survivors, and disability insurance. --In addition to other taxes, there is hereby imposed on the income of every individual a tax equal to 6.2 percent of the wages,)

Question:

Will these taxes be forgiven, or are they only deferred to be paid back at a later date?

Answer:

The Employee Social Security tax withholding is only a deferral.  Deferral is on the withholding, deposit, and payment of the tax imposed by 26 U.S.C. 3101(a) 

Question:

What is the applicable period?

Answer:

Wages or compensation, as applicable, paid during the period of September 1, 2020, through December 31, 2020

Question:

Who participates?

Answer:

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.

Question:

Is every person who qualifies according to the above paragraph REQUIRED to participate in the program? And is it the employer’s decision?

Answer:

“The deferral shall be made available with respect to any employee”

Question:

Who will offer the authorizing guidance to implement this memorandum?

Answer:

The Secretary of the Treasury shall issue guidance to implement this memorandum.

Question:

Is there a possibility that this tax deferral will be forgiven and not have to be paid back?

Answer:

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.