Payroll Tax Relief for Employers Impacted by COVID-19

Payroll Tax Relief for Employers Impacted by COVID-19

In response to COVID-19, Congress created four payroll tax relief programs for employers via the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Families First Coronavirus Response Act (FFCRA). These programs provide a tax deferral or tax credit against employer payroll costs attributable to certain wages paid to employees. For 2020, employer payroll costs include social security taxes of 6.2% up to $137,700 of wages plus Medicare taxes of 1.45% on all wages.

Eligible employers may qualify for one or more of the following four programs: (1) payroll tax deferral, (2) employee retention credit, (3) paid sick leave credit or (4) paid family leave credit. The tax deferral and credits are reportable on an employer’s Form 941, Employer’s Quarterly Federal Tax Return, starting with the form due July 31, 2020 for the second calendar quarter of 2020.

Read the full article to learn about the four payroll tax relief programs and the steps employers can take to utilize these programs.

  • Payroll tax deferral
  • Employee retention credit
  • Paid sick leave credit and paid family leave credit
  • Payroll tax relief program utilization
  • Deferral and credit calculation and funding
  • Deferral and credit reporting: Form 941
  • Read the full article


A Special Thanks to our friends at RSM for providing this article. Haynie & Company is a proud member of the RSM US Alliance.