U.S. Tax Deferral Program

HUMAN RESOURCES | Human Resources has received inquiries about the U.S. Tax Deferral Program (“Program”). The Secretary of the Treasury has authorized a deferral for the withholding, deposit, and payment of tax imposed by U.S. regulations, on wages or compensation, as applicable, paid during the period of Sept. 1, 2020, through Dec. 31, 2020, subject to the following conditions:

(1)    The deferral may 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.

(2)    Amounts deferred pursuant to the Program may be deferred without any penalty, interest, additional amount, or addition to the tax.

The Program requires that the 2020 deferred tax be paid back (withheld from wages and compensation) beginning January 2021. The deferral means that while your paycheck may look a little larger in the coming weeks, next year’s paychecks from January through April would likely be smaller.

Internal Revenue Service guidelines allow employers to participate by deferring taxes for the rest of 2020 or choose not to participate and continue to deduct taxes from paychecks as normal. After careful review and consideration, the university will not participate in this Program. Please contact Human Resources at HR@lmu.edu with any questions.

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