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Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

Thursday, October 15
• If a calendar-year C corporation that filed an automatic six-month extension:
o File a 2019 income tax return (Form 1120) and pay any tax, interest and penalties due.
o Make contributions for 2019 to certain employer-sponsored retirement plans.

Monday, November 2
• Report income tax withholding and F**A taxes for third quarter 2020 (Form 941) and pay any tax due. (See exception below under “November 10.”)

Tuesday, November 10
• Report income tax withholding and F**A taxes for third quarter 2020 (Form 941), if you deposited on time (and in full) all of the associated taxes due.

Tuesday, December 15
• If a calendar-year C corporation, pay the fourth installment of 2020 estimated income taxes.

Thursday, December 31
• Establish a retirement plan for 2020 (generally other than a SIMPLE, a Safe-Harbor 401(k) or a SEP).

What does the executive action deferring payroll taxes mean for employers and employees?

On August 8, 2020, President Trump signed an executive memorandum that defers an employee’s portion of Social Security and Medicare taxes from September 1 through December 31, 2020. At this point, the taxes are just deferred, meaning they’ll still have to be paid at a later date. However, the action directs U.S. Treasury Secretary Steven Mnuchin to “explore avenues, including legislation, to eliminate the obligation to pay the taxes.”

The exact impact on employers and employees isn’t yet known. There are many open questions, including President Trump’s legal ability to implement the deferral. Some experts believe there may be legal challenges to this executive action.

Deferral details
The payroll tax deferral will be available for “any employee the amount of whose wages or compensation, as applicable, payable during any bi-weekly pay period generally is less than $4,000.”

The deferral will be calculated on a pretax basis or the equivalent amount with respect to other pay periods. Plus, the amounts will be deferred without any penalties, interest, additional amount or addition to the tax.

Stay tuned for additional guidance
No doubt there is much to flesh out about this payroll tax deferral. Secretary Mnuchin has been instructed to provide additional guidance and employers can’t act on the deferral until that happens. It’s also possible Congress could take action. We’ll be monitoring developments and their implications, so turn to us for the latest information.
© 2020

Partial PPP loan forgiveness remains if 60% threshold not met.

Partial PPP loan forgiveness remains if 60% threshold not met Paycheck Protection Program loan recipients can receive partial loan forgiveness even if they don’t spend at least 60% of their PPP funds on payroll, Treasury and the US Small Business Administration said.

Out of an abundance of caution and at the request of the CDC, Governor Kemp and Mayor Bottoms, we are encouraging our associates to work remotely. Please rest assured that we remain ready to serve you. We are available via email, phone call or social media. You may use the secure portal on our website to upload your documents. We remain focused on serving our clients while we navigate through these unprecedented times together. Thank you for your patience and trust.