The University is aware of the August 8, 2020 Presidential executive order related to the postponement of Social Security withholding for qualifying employees for the period of September 1, 2020– December 31, 2020. On Friday, the IRS released guidance IRS Notice 2020-65 related to the implementation of this postponement. The guidance states that postponed taxes not withheld for the period must be withheld from January 1, 2021- April 30, 2021. Failure to do so will result in unpaid tax penalties.
Since this is a postponement of withholding and not a tax break from owing Social Security, the University believes it is in the employee’s best interest to continue withholding social security taxes each pay period. This will keep employees from having double the Social Security taxes withheld from paychecks starting in January 2021. In the event an employee leaves the University prior to January 2021, Clarkson will not have to subtract that postponed withholding from the employees final paycheck.
Clarkson University will continue to withhold social security taxes.