To see how Paytime can empower your business with a single system, click here.

Deferral of Employment Tax Deposits and Payments Through December 31, 2020

The IRS has issued a list of Frequently Asked Questions (FAQ’s) related to the payroll tax deferral opportunity that is provided by the Coronavirus Aid, Relief and Economic Security Act (CARES Act).  This opportunity allows employers of any size to defer the deposit and payment of the employer’s share of Social Security Taxes.  This includes tax exempt, non-profit employers, as well. It also allows self-employed individuals to defer payment of some self-employment taxes.

Clarification for Employers Participating in the Payroll Protection Program (PPP)

There has been some confusion over whether employers who obtained a Paycheck Protection Program loan could use the tax deferral since there is wording in the CARES Act that states employers who obtain PPP loans may not defer deposit of payroll taxes.  The FAQ’s have clarified that employers who have obtained PPP loans are allowed to defer deposit of payroll taxes until the employer receives a final decision from its lender that all or a portion of their PPP loan is forgiven.  An employer may not defer the deposit and payment of its share of the Social Security tax due on or after the date the employer receives notice that their loan has been forgiven and must resume their timely payroll tax deposits once loan forgiveness has occurred. 


To see a full list of the IRS FAQ’s, click HERE.

Posted August 2020 – Copyright 2020

This information is offered with the understanding that Paytime, Inc. is not engaged in rendering legal, accounting, or other professional services.  This information is meant to provide general and summary information only.  The subject matter is not specific to any company, individual or industry and none should be implied.  No attorney-client relationship or consultant-client relationship has been created and no legal or other professional advice is implied nor inferred. If legal, accounting, consulting or other professional advice is needed, those services should be acquired from a licensed professional.  In no event will Paytime, its agents or employees be liable to you for anyone else for any decision made or action taken in reliance on this information.


see all topics

Contact Us Today
& Get To Know Our Team