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ALERT: IRS Clarifies Tax Deferral Option for Payroll Protection Program Borrowers

Posted by Admin Posted on Apr 15 2020

New guidance from the IRS expands benefits for businesses seeking relief through the Paycheck Protection Program.

The IRS notice clarifies that employers who have received or are awaiting a PPP loan may take advantage of the CARES Act provision that allows them to defer paying the employer portion of social security payroll taxes effective March 27, 2020 and extending until their PPP loan is forgiven. Instead of paying these taxes when currently due, employers electing to defer will pay their portion of social security payroll taxes in two equal installments, with the first due December 31, 2021 and the second due December 31, 2022.

If you have questions concerning your company’s eligibility for or participation in PPP, contact your Yoder & Co. accountant today.