IRS Issues New Guidance

IRS Issues New Guidance on Delayed Payment of Payroll Taxes for Paycheck Protection Program Loan Recipients

Content provided by:  Katz Sapper & Miller

The IRS has clarified that employers who expect to receive a loan under the Paycheck Protection Program can delay payment of the employer portion of Social Security payroll taxes until the lender notifies the employer that they will experience loan forgiveness. The amounts delayed are still eligible to be deferred until Dec. 31, 2021, and Dec. 31, 2022, with 50% of the delayed payments due by each date.

This is welcome news for many. Prior to this clarification, loan applicants were left to interpret whether they qualified to delay employer payroll taxes and/or if previously delayed amounts would become due upon loan forgiveness.

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