More on the Payroll Tax Issue and the CARES Act
The National Law Review’s David R. Fuller, in a post on their website, examines the payroll tax-related provisions in the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law March 27 by President Trump. In summary, the Act provides employers the option of deferring their payments of the 6.2% FICA tax owed for payroll after March 12 through the end of the current year, with the proviso that half of the deferred tax be paid by the end of 2021, and the other half by the end of 2022.
The NLR article also covers the refundable payroll tax credits provided in the Act as a means to encourage employee retention during the pandemic. Fuller explains the rules on eligibility, along with the claiming procedures for accessing the credits.