8/8/2020 Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster
MEMORANDUM FOR THE SECRETARY OF THE TREASURY
SUBJECT: Deferring Payroll Tax Obligations in Light
of the Ongoing COVID-19 Disaster
By the authority vested in me as President by the Constitution and the laws of the United States of
America, it is hereby ordered as follows:
Section 1. Policy. The 2019 novel coronavirus (COVID-19) that originated in the People’s Republic
of China has caused significant, sudden, and unexpected disruptions to the American economy. On
March 13, 2020, I determined that the COVID-19 pandemic is of suicient severity and magnitude to
warrant an emergency declaration under section 501(b) of the Robert T. Staord Disaster Relief and
Emergency Assistance Act, 42 U.S.C. 5121-5207, and that is still the case today. American workers
have been particularly hard hit by this ongoing disaster. While the Department of the Treasury has
already undertaken historic eorts to alleviate the hardships of our citizens, it is clear that further
temporary relief is necessary to support working Americans during these challenging times. To
that end, today I am directing the Secretary of the Treasury to use his authority to defer certain
payroll tax obligations with respect to the American workers most in need. This modest, targeted
action will put money directly in the pockets of American workers and generate additional
incentives for work and employment, right when the money is needed most.
PRESIDENTIAL MEMORANDA
Memorandum on Deferring Payroll Tax Obligations
in Light of the Ongoing COVID-19 Disaster
BUDGET & SPENDING
Issued on: August 8, 2020
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Sec. 2. Deferring Certain Payroll Tax Obligations. The Secretary of the Treasury is hereby directed
to use his authority pursuant to 26 U.S.C. 7508A to defer the withholding, deposit, and payment of
the tax imposed by 26 U.S.C. 3101(a), and so much of the tax imposed by 26 U.S.C. 3201 as is
attributable to the rate in eect under 26 U.S.C. 3101(a), on wages or compensation, as applicable,
paid during the period of September 1, 2020, through December 31, 2020, subject to the following
conditions:
(a) 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.
(b) Amounts deferred pursuant to the implementation of this memorandum shall be deferred
without any penalties, interest, additional amount, or addition to the tax.
Sec. 3. Authorizing Guidance. The Secretary of the Treasury shall issue guidance to implement this
memorandum.
Sec. 4. Tax Forgiveness. 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.
Sec. 5. General Provisions. (a) Nothing in this memorandum shall be construed to impair or
otherwise aect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Oice of Management and Budget relating to budgetary,
administrative, or legislative proposals.
(b) This memorandum shall be implemented consistent with applicable law and subject to the
availability of appropriations.
(c) This memorandum is not intended to, and does not, create any right or benefit, substantive or
procedural, enforceable at law or in equity by any party against the United States, its departments,
agencies, or entities, its oicers, employees, or agents, or any other person. 8/8/2020 Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster | The White House
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(d) You are authorized and directed to publish this memorandum in the Federal Register.
DONALD J. TRUMP