Update on pandemic payroll tax deferrment

New guidance on the so-called pandemic payroll tax deferment issued by IRS last week does not change previously issued guidance to small business employers. The new IRS guidance strengthens the argument that employers should not make any change in payroll tax practices at this time.

Deferent of payroll taxes, if not paid timely in early 2021, potentially puts both the employer and the employee at risk for the severe collection procedures for recovery of unpaid trust funds.

Our original advice in response to the Executive Order

The new IRS guidance issued as Notice 2020-65


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