The IRS recently published FAQs that clarify payment of the employer’s share of FICA from March 27, 2020 through December 31, 2020. In the IRS FAQs (linked below), the IRS has clarified that all employers may defer payment of the Employer’s share of FICA (i.e. the 6.2%) for deposits and payments otherwise due beginning March 27, 2020 through December 31, 2020. Employers that apply for and receive a PPP (Paycheck Protection Program) loan may not defer the 6.2% once the PPP loan is forgiven, but the employer may defer payment of the employer’s share of FICA up to the point the PPP loan is forgiven. The deferred 6.2% Employer’s share of FICA will ultimately need to be paid, but not until December 31, 2021 (50%) and December 31, 2022 (the other 50%). Contact your payroll service as soon as possible if you would like to take advantage of this deferral.
If you have any questions about how the information in this article may affect you or your business, please reach out to our specialists using the form below.