The short answer is "yes." The CARES Act employer payroll tax deferral was not a grant, nor was it a forgivable loan like some of the other COVID-19 tax relief for business owners.Įmployers who opted to defer payment of the 6.2% employer portion of FICA taxes owed on the first $137,700 of an employee's wages during the deferral period must ultimately pay these taxes to the IRS. Read on for answers to those questions and more.ĭo I have to pay back the payroll tax deferment?
Payroll tax deferral guidance how to#
If you are an employer who took part in payroll tax deferment, you may be wondering how to make payments to the IRS and what the deadlines are for repayment. This time period is referred to as the "payroll tax deferral period" and it gave small business employers a bit more money to help support their operations during the first year of the pandemic. One of those measures available to employers under the Coronavirus Aid, Relief and Economic Security (CARES) Act gave small business owners, including self-employed people, the ability to defer certain payroll taxes from Mathrough December 31, 2020. There were several legislative and executive actions taken in 2020 designed to provide tax relief to individuals and small business owners adversely affected by the COVID-19 pandemic. Talk to a professional for help with your tax situation.Will the timing of employer payroll tax payments affect tax planning and deductions for current and future tax filings?.How do employers make payments to the IRS for deferred payroll taxes?.
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