IRS reminds businesses to e-file payroll tax returns
The IRS urges payroll professionals and businesses to use the speed and convenience of filing payroll tax returns (Forms 940, 941, 943, 944 or 945) electronically.
An IRS new release (click here) provides information on business e-file and the two options for electronically filing payroll tax returns.
PPP loan forgiveness fact sheet
Check out the Small Business Administration’s Paycheck Protection Program Loan Forgiveness fact sheet (click here) to find out how to:
- Contact a PPP lender and complete the correct form
- Compile documentation
- Submit the forgiveness form and documentation to a PPP lender
- Continue communicating with a lender throughout the process
Form W-2 reporting of employee Social Security tax deferred under Notice 2020-65 – Instructions for employers and employees
Notice 2020-65 (click here) allowed employers the option to defer the employee portion of Social Security tax from September 1, 2020 through December 31, 2020, for eligible employees.
The IRS created instructions for both employers and employees (click here) about reporting deferral of this tax on Form W-2.
State and Local Income Taxes and Partnerships or S Corporations
Notice 2020-75 (click here) announces that the Department of Treasury and the Internal Revenue Service (IRS) intend to issue proposed regulations to clarify that State and local income taxes imposed on and paid by a partnership or an S corporation on its income are allowed as a deduction by the partnership or S corporation in computing its non-separately stated taxable income or loss for the taxable year of payment, and therefore are not subject to the State and local tax deduction limitation for partners and shareholders who itemize deductions.