IRS Clarifies Payroll Tax Deferrals under the CARES Act

As a part of the recent CARES Act, employers are now permitted to defer both the deposit and payment of the employer’s portion of social security taxes that would otherwise be due during the last three calendar quarters of 2020. This provision will permit employers to deposit half of these deferred payments by the end of 2021 and the other half by the end of 2022. This provision can also be utilized by self-employed individuals.

To read the full article explaining How this Deferral Works, How it is Integrated with the PPP Loan Recipients and How to Take Advantage of the Deferral of Payroll Taxes, please click here.

We will continue to follow these developments and will provide additional information as we receive clarification. These are very challenging times. Please know that LB Goodman is here to help you with your financial questions and concerns.

If you have any questions, do not hesitate to contact us.

Information as of April 16, 2020.