![]() ![]() Which employers may defer deposit and payment of the employer’s share of Social Security tax (or railroad retirement tax) without incurring failure to deposit and failure to pay penalties?Īll employers may defer the deposit and payment of the employer’s share of Social Security tax (or railroad retirement tax). Key components of the FAQ related to the payroll tax deferrals under the CARES Act, specifically as they relate to the Paycheck Protection Program (PPP) and credits resulting from the employee retention credit and credits under the Families First Coronavirus Response Act (FFCRA), are highlighted below. The IRS recently released a comprehensive FAQ, which can be found here. Self-employed individuals receive similar relief under the law. Taxpayers can pay the tax over the next two years, with the first half due by December 31, 2021, and the second half due by December 31, 2022. The new law allows employers to delay their payment of the employer share (6.2% of wages) of the Social Security payroll tax beginning March 27 th, 2020 through December 31 st, 2020. The CARES Act includes numerous provisions intended to help affected businesses, including payroll tax deferral. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) represents the third phase of Congress’s legislative efforts to address the financial and health care crisis resulting from the coronavirus (COVID-19) pandemic. How Do They Coincide with the PPP and Other Stimulus Credits?
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