As with many types of tax correspondence, it can be difficult to determine how recent guidance from the IRS on payroll deferral really impacts your plans and your future. Recent IRS communication about this issue was released, and it looks like this program might not be good for most taxpayers. That said, it’s still just as important to discuss the specifics with your GA estate planning lawyer.
Here’s the breakdown of what this guidance means for you:
- It’s up to your employer, not employees, whether or not to hold back Social Security taxes from paychecks administered from September through December. Employers who do this would then see their employee Social Security withholding taxes increase from Jan 1 through April 30 in 2021.
- Employers who want to do this can defer payment, withholding, & deposit of specific payroll taxes on wages for employees from Sept. 1 through Dec. 31, 2020.
- If you’re an employer, however, the issues are even more difficult. What happens if that employee leaves the company? Does it make sense for you to opt into this? These are the kinds of conversations I’ve been having with Georgia business owners in my virtual consultations and strategy sessions.
Because there’s so much potential for things to shift even further in the coming months with an election looming, now is the perfect time to discuss your business tax planning strategy and get ready for Q4 and 2021. Click here to learn more and to schedule a session with me so you can stay ahead of the curve.