Employer Social Security Deferral & the CARES Act

Section 2302 The CARES Act, Delay of Payment of Employer Payroll Taxes, allows employers who wish to defer the payment of the 6.2% employer social security taxes that would be paid through December 31, 2020 [1]. The first half of the taxes due would be deferred to December 31, 2021, while the second half of the total is deferred to December 31, 2022 [2].

If you were considering taking advantage of this deferral and the Paycheck Protection Program, please note you cannot. If any portion of an SBA Paycheck Protection Loan is forgiven, you cannot take advantage of both programs [3][4].

If you still want to proceed with the Employer Social Security Deferral, you will need to contact your payroll specialist. Please be sure to contact us with any questions or concerns. Information is subject to updates.

[1] https://www.adp.com/spark/articles/2020/03/covid-19-emergency-legislation-offers-substantial-relief-to-employers.aspx#

[2] https://www.natlawreview.com/article/cares-act-social-security-tax-deferral-and-employee-retention-credits

[3] The Cares Act, Section 2302, Part (3) Exceptions

[4] Paychex