Part of the CARES Act is a delay in a portion of payroll taxes. Employers can defer payment of the employer share (non-trust fund portion) of Social Security only on all wages through Dec. 31, 2020. Half will need to be made up in 2021, the other half in 2022. If a business uses a Payroll Protection Program loan to make payroll and has part of that debt forgiven, this 941 delay doesn’t apply.
This “forbearance”, if you will, coupled with the Payroll Protection Program and the payroll credits in the new law, make for a pretty sweet package, especially for those of you who are behind on paying payroll taxes. This is a great time to get cleaned up, back in compliance, and on the path to resolution. Contact us now to help you get in compliance.