US Treasury Gives Guidance on Trump’s Payroll Tax Deferral Action

U.S. Secret Service Uniform Division officers walk in the door near the seal on the U.S. Treasury building in Washington on Aug. 9, 2011. Paul J. Richards /AFP/Getty Images

The U.S. Treasury Department released guidance (pdf) Friday evening informing companies and workers how Trump’s proposed tax holiday will apply to them.

Companies can stop withholding employees’ payroll taxes starting Sept. 1, although workers may still have to pay the taxes by the end of April 2021. The new guidance, released together with the IRS, applies only to those whose bi-weekly paychecks are less than $4,000, the equivalent of $104,000 a year.