PAYROLL TAX DEFERRAL

This page will be updated continuously to reflect the most recent information on the coronavirus. This page was last updated on March 28, 2020.

 

Overview

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability.

 

Eligibility

Employers, both businesses and non-profits, are eligible to defer their payroll taxes, unless they receive a loan under the SBA Paycheck Protection Program.  More information about the SBA Paycheck Protection Program is available here

 

Deadlines

  • Employers may defer payroll taxes through the end of 2020;
  • The first 50 percent of the deferred amount must be paid before December 31, 2021;
  • The second 50 percent of the deferred amount must be paid before December 31, 2022.

 

More Information

For more information, please check the IRS’s website at https://www.irs.gov/coronavirus.