By SESCO Management Consultants, an NFDA Endorsed Provider
President Trump has signed two Executive Orders that impact employees and benefits that can be received by former employees.
The first Executive Order involves a deferral of the employee portion of Social Security taxes.
- This applies only to employees who are paid less than $4,000 per bi-weekly payroll, or equal to $104,000 per year.
- The Order directs the Secretary of the Treasury to issue guidance that in effect defers the withholding and payment of those taxes from September 1, 2020 through December 31, 2020. For now, employers should prepare to stop withholding the employee portion of such taxes effective September 1, 2020.
Another Executive Order addresses unemployment compensation benefits.
- The Order authorizes the Federal government to use disaster relief funds to assist States who meet certain requirements with providing enhanced benefits.
- If the governor of a State requests the assistance and promises to administer the program consistent with the requirements of the Order, which include twenty-five percent participation in funding by the State, then the State can receive the funds.
- The enhancement would provide an additional $400 per week in benefits for persons who lost their job for COVID-related reasons from the week ending August 1, through December 6, 2020.
A legal challenge to the Executive Orders is expected.