Thus, the due date for deferred applicable taxes to be repaid has now been extended from April 30, 2021, to December 31, 2021. In response, the relief provided by Notice 2020-65 is modified as follows:įor Affected Taxpayers, the due date for the withholding and payment of Applicable Taxes is postponed until the period beginning on January 1, 2021, and ending on December 31, 2021. The CAA requires the IRS to ensure that Notice 2020-65 is now applied by substituting “December 31, 2021,” for “April 30, 2021,” and by substituting “January 1, 2022,” for “May 1, 2021,” in each place it appears. The guidance also provided that the amount of such wages or compensation paid for a bi-weekly pay period must be less than the threshold amount of $4,000, or the equivalent threshold amount with respect to other pay periods. On August 8, 2020, a Presidential Memorandum allowed an employer to elect to defer withholding of the 6.2% employee share of the Social Security tax on wages between September 1, 2020, and December 31, 2020.įor affected taxpayers, Notice 2020-65 originally postponed the due date for the withholding and repayment of the applicable taxes until the period beginning on January 1, 2021, and ending on April 30, 2021. The update reflects the changed deferral rules contained in the Consolidated Appropriations Act (CAA). It provides guidance regarding an executive memorandum signed last summer that allowed employers to defer the withholding, deposit and payment of certain payroll tax obligations in 2020. In late January, the IRS updated Notice 2020-65.
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