PAYROLL TAX DEFERRAL

Business, COVID-19, Taxes

Due to the rapidly changing information related to the CARES Act we have updated the information below and included more links directly to the U.S. Treasury and SBA websites.

Please continue to check these resources as they are changing not by the day but by the hour.

We are continually updating ourselves and encourage you to call us with your questions as you navigate the various loan programs.

Below is a general overview of the program but you MUST refer to the websites above for specific details, the below cannot be relied upon for anything but general information.

Last updated 4/4/20  9:00 a.m.

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Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability.

Eligibility

Employers, both businesses and non-profits, are eligible to defer their payroll taxes, unless they receive a loan under the SBA Paycheck Protection Program.

Deadlines

  • Employers may defer payroll taxes through the end of 2020;
  • The first 50 percent of the deferred amount must be paid before December 31, 2021;
  • The second 50 percent of the deferred amount must be paid before December 31, 2022.

More Information

For more information, please check the IRS’s website at https://www.irs.gov/coronavirus.