IRS Simplifies Covid-19 Payroll Tax Credit, Retention Processes (1)

The set of employment taxes against which three new refundable payroll tax credits may be directly applied and that employers may avoid depositing in anticipation of the credits is broader under IRS guidance than in recent legislation because the IRS simplified these processes.

The employer portion of Social Security tax imposed by Internal Revenue Code Section 3111(a) was the only employment tax, other than with regard to assessments under the Railroad Retirement Tax Act, that was identified in the Families First Coronavirus Response Act (FFCRA), enacted March 18, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted March ...