(610) 296-2500
  • Home
  • Services
    • Accounting Services
    • Tax Services
    • Advisory Services
    • Auditing
    • Financial Reporting
    • Business Startup
  • About Us
  • Our Team
  • Accounting, Tax & COVID 19 Resources
  • Contact Us

Delayed Payment of Employer Payroll Taxes

Categories

  • Tax Tips
  • Coronavirus Aid, Relief, and Economic Security Act (CARES ACT)
  • Payroll Protection Program
  • Families First Coronavirus Response Act
  • Economic Incentive Payment
  • PA COVID-19 Grant Programs
  • Business Incorporation
  • Closing a Business
  • Small Business Issues
  • Flexible Spending Accounts
  • PPP Loan Forgiveness
  • PPP Taxes
  • COVID Tax Tips
  • Economic Impact Payment
  • Economic Injury Disaster Loan
  • Economic Impact Taxes
  • Others
June 09 2020 RgKAdmin14 Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) 0 comments
146 0

After days of furious negotiations, Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $2.2 trillion price tag for tax relief and incentives for individuals and businesses makes it the most expensive piece of legislation ever passed. In order to free up employers’ cash flow and retain employees during times of quarantine or shutdown, the CARES Act defers the payment of the employer share of payroll taxes.

In general, under the Federal Insurance Contributions Act (FICA), taxes are imposed on both employers and employees on wages paid to the employee for Social Security (old-age, survivors, and disability insurance (OASDI)), and Medicare hospital insurance (HI). The FICA taxes are imposed on both the employer and the employee at a rate of 6.2 percent for OASDI and 1.45 percent for HI for a total of 7.65 percent for the employee and 7.65 for the employer (15.3 percent total).

Payroll taxes due from the period beginning on the date the CARES Act is signed into law and ending on December 31, 2020, can be deferred. The total payroll taxes incurred by employers, and 50 percent of payroll taxes incurred by self- employed persons qualify for the deferral. Half of the deferred payroll taxes are due on December 31, 2021, with the remainder due on December 31, 2022.

In addition to the payroll tax deferment, the CARES Act also provides for an employee retention credit and advance payment of payroll credits for employee paid sick and family leave. Please call our office to discuss your available options.

This blog provides summary information regarding the subject matter at time of publishing. Please call with any questions on how this information may impact your situation. This material may not be published, re-written or redistributed without permission, except as noted here. This blog includes, or may include, links to third party internet web sites controlled and maintained by others. When accessing these links the user leaves this blog. These links are included solely for the convenience of users and their presence does not constitute any endorsement of the Websites linked or referred to nor does ROBERT J KRATZ & CO have any control over, or responsibility for, the content of any such Websites. All rights reserved.
Recovery Rebates for Individuals Employee Retention Credit

Recent Posts

  • Common IRS Surprises
  • Business owners should visit IRS.gov for help with tax actions when closing a business 
  • New Security Measures Help Protect Against Tax-Related Identity Theft
  • Retirement Savings Tips for Small Business Owners
  • How to Walk the Tightrope When Raising Prices

Time Left to File


Robert J Kratz Logo

610-296-2500

145 West Lancaster Ave.
Paoli, PA 19301

Site Map

  • Home
  • About Us
  • Our Team
  • COVID-19 Resources
  • Contact Us

Our Services

  • Accounting Services
  • Tax Services
  • Advisory Services
  • Auditing
  • Financial Reporting
  • Business Startup

Follow Us

Robert J Kratz Facebook Logo

Copyright © 2018 Robert J Kratz & CO. CPA. All Rights Reserved. Designed by: The Marketing Department Malvern, PA