You may be able to delay payroll taxes by 2 years. Under the CARES Act, employer-side Social Security payroll tax payments may be delayed until January 1, 2021, with 50 percent owed on December 31, 2021 and the other half owed on December 31, 2022. The Social Security Trust Fund will be back-filled by general revenue in the interim period.
Similar relief is provided for self-employed individuals under the CARES Act. However, those taxpayers still must pay 50 percent of the Social Security tax portion of these self-employment taxes, i.e., the employee’s share, in the same manner as usual.
Employers who have had indebtedness forgiven under the Small Business Act are not eligible for this payroll and self-employment tax deferral relief.
- PEO would not be held liable if the employer company directs the PEO to delay paying their respective payroll taxes.
Contact us for additional information or to discuss your specific situation.