Guidance on deferring certain employee Social Security tax withholding
Notice 2020-65 provides guidance to employers for allowing deferred withholding and payment of an employee’s portion of the Social Security tax if their wages are below a certain amount. This relief generally applies to wages paid between September 1, 2020, through December 31, 2020. Click here.
Information reporting requirements for PPP loans forgiven under the CARES Act
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows qualifying small business owners to receive Paycheck Protection Program (PPP) loans in order to stay in business and pay their employees during the Coronavirus epidemic.
Recipients of these loans are eligible for forgiveness of all or a portion of these loans if the loan proceeds are used in accordance with the CARES Act.
Announcement 2020-12 notifies lenders who make PPP loans (that are later forgiven under the CARES Act) should not file information returns or furnish payee statements to report the forgiveness. Click here.
Three employer credits available that grant relief to businesses
The Internal Revenue Service reminds business owners and self-employed individuals of three employer credits (click here) available to them during COVID-19. During Small Business Week, the IRS wants to ensure all eligible people know about the relief these credits provide.
The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
The Paid Family Leave and Sick Leave Credit is designed to allow business to get a credit for an employee who is unable to work (including telework) because of Coronavirus quarantine, self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis.
Employees are also entitled to paid family and medical leave equal to 2/3 of the employee’s regular pay, up to $200 per day and $10,000 in total. Up to 10 weeks of qualifying leave can be counted towards the Family Leave Credit.
New publications on IRS.gov