Payroll tax deferment under Coronavirus Relief

payroll tax deferment

Companies benefitting from Payroll tax deferment under Coronavirus Relief, Economic Security (CARES) Act know about the IRS's position on deferred tax payment. Even a day of delinquent payment can lead to harsh outcomes.  CARES act Section 2302 lets businesses elect for deferring employer social Security tax share on paid wages between 1st April and 31st Dec. 2020.

The cash flow for businesses coping with a pandemic, as businesses don’t need a 6.2% Social Security taxes deposit when paid wages were there. Deferred taxes are repaid in two installments: 50% due by 31st Dec 2021, and 50% due by 31st Dec 2022. Large and small businesses take benefit of what is an interest-free government loan.  According to IRS PMTA, 2021 memorandum 2021-07 late CARES Act payment of deferred tax makes the whole amount deferred is 10% failure deposit penalty - not the first installment due by 2021 years end. In other words, the first installment late payment of deferred tax is due by the 2021 end and accelerates the second installment payment that wouldn’t be due until 31st Dec 2022, and a 10% penalty would be due on the whole amount. 

For this case, IRS demands payment of the whole deferred tax amount, and when firms don’t pay within 10 days, the penalty increases by 15%.  Our elite CPA Attorney due diligence community offers vetted ERTC and tax solutions to increase business profits that a few people know about. You can a lot of time and money after getting vetted unique solutions where the employees are ahead. 

Businesses contact us and we discuss ERTC ($33,000 Payroll tax credit for employees retroactive to March 2020). After dealing with it, we make other solution suggestions. After it company deals with CFO and CFA.  The conventional CPA business model is getting hindered by the AI's disruptive effects with Tax Return software. We work with a CPA 2.0 business model letting the CPAs appear as a backup to clients and providing leading-edge solutions for maximizing client profits. 

Please Visit - 

https://businesstaxbenefits.com/

https://cpaduediligence.com/


Location: San Jose, CA, USA

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