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State payroll system ready for Social Security withholding deferral; no final decision

PUBLIC HEALTH, WELFARE AND LABOR COMMITTEE - SENATE · September 9, 2020
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Summary

Arkansas officials told lawmakers the state payroll system can implement the federal temporary Social Security withholding deferral for eligible employees but no final decision had been made; deferred taxes must be repaid by employers between Jan. 1 and April 30, 2021, and the state warned of potential liabilities if it fails to remit.

Secretary Amy Fancher told the committee that the state payroll system is configured to implement the temporary federal option allowing employers to defer withholding the employee portion of Social Security taxes from Sept. 1 through Dec. 30, 2020, for employees who earn less…

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