Payroll tax deferral / 941 form

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Greghc48
Posts: 82
Joined: Wed Aug 12, 2015 11:23 am

Payroll tax deferral / 941 form

Post by Greghc48 »

Anybody have any suggestions on how to implement the payroll tax deferral, and how it will affect the 3Q2020 941 form?

I’m kinda stumped on what to do...

Thx,

Greg

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Payroll tax deferral / 941 form

Post by NeilZ »

Greghc48 wrote:
Thu Sep 17, 2020 10:14 am
Anybody have any suggestions on how to implement the payroll tax deferral, and how it will affect the 3Q2020 941 form?

I’m kinda stumped on what to do...

Thx,

Greg
FWIW ... unless the employee really wants withholding to stop, I would keep withholding. The reason is, as of now, they will STILL be liable for the taxes in 2021. So rather then them coming up with owing a lump sum when they file next year, just take it out and deposit it as normal. I would definitely ask each employee, but do let them know that as of now, they will have to pay any amount over what was withheld.

its what I'm doing.

As far as the 941 ... that hasn't changed, unless the IRS has come out with new guidance, you still need to submit the 941 for the quarter.
Neil Zampella

Using PC+ since 1999.

Greghc48
Posts: 82
Joined: Wed Aug 12, 2015 11:23 am

Re: Payroll tax deferral / 941 form

Post by Greghc48 »

Thanks again, Neil.

I’ve looked at the IRS site also and found that they are working on an update to the 941 to accommodate the withholding change, if implemented by employers. I agree that it would be less cumbersome on employers to go on with withholding as normal, assuming that the taxes would not be forgiven, and would be deferred. I’m not sure what happens to the employee taxes if withholding continues as normal for 2020, but then forgiven in 2021. Would the employee taxes be reduced do to “overpayment”?

Also, during this period, wouldn’t the employers still have to pay their share of payroll taxes anyway? Not sure about that either....

It makes me just want to ignore the offer, talk with employees to get their support...

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Payroll tax deferral / 941 form

Post by NeilZ »

Greghc48 wrote:
Thu Sep 17, 2020 12:16 pm
Thanks again, Neil.

I’ve looked at the IRS site also and found that they are working on an update to the 941 to accommodate the withholding change, if implemented by employers. I agree that it would be less cumbersome on employers to go on with withholding as normal, assuming that the taxes would not be forgiven, and would be deferred. I’m not sure what happens to the employee taxes if withholding continues as normal for 2020, but then forgiven in 2021. Would the employee taxes be reduced do to “overpayment”?

Also, during this period, wouldn’t the employers still have to pay their share of payroll taxes anyway? Not sure about that either....

It makes me just want to ignore the offer, talk with employees to get their support...
The taxes withheld would be treated as any withholding that was more than the tax due, as a refund. As far as SS and Medicare tax, yes I do believe that employers still have to pay their share.
Neil Zampella

Using PC+ since 1999.

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