Thread by @trevorloy, THREAD: @IRSnews issued guidance today on payroll tax deferral provision of CARES. [...]

Trevor Loy

trevorloy

THREAD: @IRSnews issued guidance today on payroll tax deferral provision of CARES. Link: https://bit.ly/3c8C1bh

Thanks to @nvca for putting pressure on @USTreasury
& @IRSnews to issue clarity & relief. Benefits all SMBs, not just those w/VC $.

Summary (11 FAQ's):

[1/n]

Deferral of employment tax deposits and payments through December 31, 2020 | Internal Revenue...

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...

https://bit.ly/3c8C1bh

[2/n] Background: CARES Act enables employers to defer payroll tax deposits & pmts of employer share of FICA taxes. Also enables self-empl to defer pmt of self-empl taxes.

Many have raised Q's about eligiblity vs. PPP loans, FFCRA tax credits, & CARES ERC tax credits.

FAQs:

[3/n] Q1. What deposits/pmts can employers defer?

(continued...)

[4/n] A1. Employers can defer both deposit + pmt of emplyr share of social security (FICA) taxes, or equiv for Railroad employers.

[I will abbreviate as "emplyr payroll tax."]

If receive PPP loan, after forgiveness approved, may no longer defer dep/pmt subsequent taxes due.

[5/n] Q2. When can begin deferring dep/pmt of emplyr payroll taxes?

(continued...)

[6/n] A2. Deferral applies to dep/pmts req'd to be made from 3/27/2020 to 12/31/2020. CARES calls this "payroll tax deferral period."

Form 941 will be revised for Q2 2020 (Apr-Jun).

Info coming soon to instruct how to reflect deferrals for elig portion of Q1 (3/27 to 3/31).

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