Payroll Tax payment delay approved by IRS
IRS allowed deferring the payment of the employer’s portion of social security taxes and more.
In short: “The Coronavirus, Aid, Relief and Economic Security Act (CARES Act) allows employers to defer the deposit and payment of the employer’s share of social security taxes and self-employed individuals to defer payment of certain self-employment taxes.”
Important dates to know are the dates when business owners should deposit those deferred amounts:
On December 31, 2021, 50 percent of the deferred amount; and
On December 31, 2022, the remaining amount.
Please, make sure to use this link and read all the details.
Remember that the payroll tax deferral applied only to the payment of the employer’s portion of social security tax that would otherwise be required to process during the period beginning on March 27, 2020, and ending December 31, 2020. In other words, you get 20 months of cash available to reinvest in innovation, operations, marketing, and advertising strategies of your business. If you are still struggling to get your numbers right, call us now or schedule an appointment!
Remember that when the deferred amounts deposited by the dates mentioned above IRS will not charge any additional fees.
Additionally, Employee Retention Credit for the employers subject to closure due to the COVID-19 Crisis allows business owners to get the refundable tax credit for the wages paid during the period from March 12, 2020, till December 31, 2020. You can find more detailed information on how you can calculate and report this payroll tax credit on this page: IRS COVID-19
COVID-19 emergency lockdown is truly is making history in all areas of the business practices and family lives of many citizens. We are staying up to date on all recent changes and here to help you to keep your business growing consistently in any economic situation.