No, it doesn't. The presidential memorandum specifically references the section of the Internal Revenue Code that imposes the employee's portion of the Social Security tax. The employer's portion is in a different section of the IRC that is not referenced in the memorandum.
The employer still looks responsible for paying the employee's portion
of the payroll tax to the Federal Government after the deferral period
ends (do I have this wrong?). Why would any employer quit withholding
payroll taxes they will be required to eventually pay? If the employer
doesn't withhold, is the employer still responsible for paying the
deferred amount for former employees? And will employers find it
necessary to withhold 5 months of past payroll tax from current
employee's early 2021 paychecks?
None of that is clear from the memorandum. All it says is "The Secretary of the Treasury shall issue guidance to implement this memorandum." No one knows what's going to happen. We have to wait until the IRS publishes detailed rules.
A lot of people think that the employee, not the employer, will be responsible for paying the deferred tax. It might get added to the employee's 2020 tax return. According to news reports, and as recommended by some accounting firms, many employers are doing nothing right now, just waiting to see what the rules are.
An if Congress comes to an agreement and enacts a rescue package, the presidential memorandum might end up being nullified.
For those of you who do not know how to translate "Social Security tax",
it is the old age, survivors and disability insurance (OASDI) tax of
6.2%. Employers match the employee contribution. 50% of the deferred
amount is due by 12/31/21 and the remainder by 12/31/22. Medicare taxes
(1.45%) have not been deferred. The deferral of the employer
contribution includes the self-employed.
And.... you are only eligible to defer the deposit if you have not had
indebtedness forgiven under either Section 1106 or 1109 of the CARES Act.