1) On Friday @IRSnews issued NEW #FAQs resolving whether an employer that receives a #PPP #Loan may defer Employer portion of #socialSecurityTaxes under #CARESAct irs.gov/newsroom/defer…
2) Employers receiving #PPPloans may not defer the deposit&payment of the Employer share of #SocialSecurity tax "otherwise due AFTER the employer receives a decision from the lender that the loan was forgiven." #IRSFAQ #1
3) The deferral applies to deposits&payments of an Employer's share of #SocialSecurity #tax that would otherwise be required to be made during the "Payroll Tax Deferral Period" (March 27 through December 31, 2020). #CARES #Section2302 @IRSnews #FAQ 2
5) IRS will revise #Form941, Employer's QUARTERLY Federal Tax Return, for the Q2 of 2020 (April - June, 2020)
6) #IRS reiterates that Employers with a #PPP Loan (for instance, under #SBA7a) can still defer SS Tax but CANNOT defer the deposit&payment of Employer's share of #socialsecurity tax due on or after the date that the PPP loan is forgiven under #CARESAct
7) If you have a #PPPLoan, then "once an employer receives a decision from its lender that its #PPP loan is forgiven, the employer is no longer eligible to defer deposit&payment of the employer's share of #SocialSecurity tax due after that date" BUT...
8) BUT the deferred amount (of Employer's portion of #SocialSecurity tax) continues to be deferred and will be due on the "applicable dates" (50% by 12/31/21 & the rest by 12/31/2022) - see FAQs #4,7&8 - 0% interest if paid in full by those IRS #ApplicableDates
9) My @LowensteinLLP colleagues published new guidance on #SocialSecurityDeferrals under #PPP (& interplay with #SBALoans) my.lowenstein.com/15/2142/april-…
