30 Mar Employer Payroll Tax Deferment
In order to provide increased liquidity during the COVID-19 crisis, The CARES Act has also provided a temporary payroll tax holiday. This is an option for employers to defer certain payroll taxes due between the enactment of the CARES Act and December 31, 2020.
Important to Note:
– This credit is not available to any employer who takes a loan under the Payroll Protection Loan Program.
Eligible Taxes – Applicable payroll taxes are limited to the 6.2% employer Social Security tax liability. Paycheck Protection Programs Loans
Deferment Dates – 50% of the applicable taxes are due December 31, 2021 with the remaining 50% of the amount due on December 31, 2022.
Self-Employed – Additionally, self-employed taxpayers can defer up to 50% of any related Self-Employment tax due between the enactment of the CARES Act and December 31, 2020. The deferment includes any estimated tax payments, as no estimated tax penalty will be assessed on these amounts.
Additional information regarding the payment of these deferred amounts as well as additional forms with be forthcoming. We will provide you with the necessary guidance as it becomes available.