Home > Covid-19 Resources for Small Businesses > Payroll Tax Deferral

  
SUMMARY
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows taxpayers to defer paying the employer portion of certain payroll taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. Payroll taxes that can be deferred include the employer portion of FICA taxes, the employer and employee representative portion of Railroad Retirement taxes (that are attributable to the employer FICA rate), and half of SECA tax liability.

  
ELIGIBILITY
Employers, both businesses and non-profits, are eligible to defer their payroll taxes, unless they receive a loan under the SBA Paycheck Protection Program. More information about the SBA Paycheck Protection Program is available here.
  
DEFFERED PAYMENT TIMETABLE
Employers may defer payroll taxes through the end of 2020. The first 50 percent of the deferred amount must be paid before December 31, 2021 and the second 50 percent of the deferred amount must be paid before December 31, 2022.
  
MORE INFORMATION
For more information, please check the IRS’s website at https://www.irs.gov/coronavirus. Please speak to your tax advisor.
 
IMPORTANT NOTICE FROM NEEDLEMAN MANAGEMENT
Needleman Management presents this information as a service to our tenants, clients, vendors and contractors as an informational resource only. We do not claim to be lawyers, accountants or tax professionals. We present this material for informational purposes only and is based solely as our best understanding at this time. We accept no liability for any action based on this information nor for any errors or omissions. We strongly suggest that you discuss the material provided herein with your legal and tax professionals.
 
The full 880-page CARES Act document can be found here.
 

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Last Updated: March 30, 2020