IRS Updates FAQs on Deferral of Payroll Taxes for PPP Borrowers

June 29, 2020, 8:57 PM

The Internal Revenue Service updated its list of frequently asked questions June 26 to reflect the changes in the Payroll Protection Program Flexibility Act (PPPFA) and give employers the option to defer employment tax payments through Dec. 31, 2020.

Under the law, employers with Payroll Protection Program loans can defer employment taxes even when the loan is forgiven, the IRS said in Question 4 of the FAQs.

The PPPFA strikes the rule that would have “prevented an employer from deferring the deposit and payment of the employer’s share of Social Security tax after the employer receives a decision that its...

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