Posted on September 1, 2020 by email@example.com in Uncategorized
IRS Issues Employee Payroll Tax Deferral Guidance
Our insurance partners at CBIZ have shared that the IRS released guidance that implements President Trump’s executive order permitting employers to defer certain employee payroll taxes. The IRS guidance, released on August 28th, provides key details on employee eligibility, the repayment period, and employer responsibilities. But the IRS guidance leaves some questions unanswered, even as the optional deferral period takes effect September 1. Importantly, the IRS guidance could cause an economic hardship for many employees while exposing employers to a new contingent liability.
Read the full article here to learn more, including:
Note: Under the CARES Act, employers can already defer paying their portion of Social Security taxes through December 31, 2020. All 2020 deferred amounts are due in two equal installments — one at the end of 2021 and the other at the end of 2022.
Congress Still at Stalemate
August drew to a close without an agreement among lawmakers, although talks about a third relief package resumed last week. In mid-May the House passed the Democrats’ $3 trillion coronavirus aid bill, the Heroes Act, that was never voted on in the Senate. Senate Republicans introduced their own $1 trillion package, the HEALS Act. Both plans include another round of $1,200 relief payments, but Democrats and Republicans remain locked in a stalemate on other provisions of the bills.
Do You Need a Refresher?
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