Bloomberg Tax
Sept. 3, 2020, 9:22 PM

IRS Confirms Employee Social Security Tax Deferral Is Optional

Howard Perlman
Howard Perlman
Reporter/Editor

Deferring the employee portion of Social Security tax is optional, the IRS confirmed Sept. 3, resolving ambiguity in this regard that had persisted since the announcement of this relief measure.

The implementation of this relief through application of Internal Revenue Code Section 7508A allowed the relief to be optional, an IRS representative said during the agency’s monthly payroll industry teleconference. Section 7508A is with regard to the Treasury Department’s authority to postpone specified deadlines in response to a federally declared disaster, such as the novel coronavirus outbreak.

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“Employers may, but are not required, to utilize the relief” with ...

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