The CARES Act allows for the deferral of the employer’s social security tax deposits from 3/27/20 through the end of 2020. The deferred amounts must be deposited over the next two years, half of the deferred amount by 12/31/21, and the other half by 12/31/22. Originally, the CARES Act prohibited PPP recipients from exercising this benefit, but the PPP Flexibility Act removed that restriction. If your deposits for 2nd quarter have already been made, you can begin taking advantage of this in 3rd quarter; however, it cannot be used to create overpayments on the return.
If you have any questions about this election, please reach out to your JMF advisor.
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