An executive order signed by President Trump in early August provides an option for deferral of certain payroll taxes for employees that can be implemented this month. Following the guidance of the UNC System, UNCG will not participate in the Tax Deferral Program. Employees will continue to receive their regular paycheck with the same withholdings. In other words, there will be no change.
As indicated in the UNC System guidance, the payroll tax deferral has the potential to give some employees a larger net pay in the short term, but it is a temporary measure that could also have other implications for our employees. In Notice 2020-65, the IRS provides some guidance, indicating that deferred payroll taxes must be repaid between January 1 and April 30, 2021; that workers will be required to repay the tax even if they leave their current employer; and that any tax that isn’t repaid within that window will be subject to interest and penalties.
Employees are able to adjust their NC State Tax and/or Federal Tax withholding allowances at any time through UNCGenie.