Payroll tax deferrals under the new executive order and under the Cares Act
- Yechiel Roth CPA, CFP, PFS
- Aug 30, 2020
- 1 min read
Updated: Dec 29, 2020
What’s the difference and should you utilize it?
Under the Cares Act, an employer is allowed to defer payment of the employer portion of social security tax, for the amounts accrued 3/27/2020-12/31/2020, and is only be liable to pay half by 12/31/2021 and half by 12/31/2022.
For illustration purposes a company that pays $1,000,000 in wages subject to social security taxes in the period 3/27/2020-12/31/2020, can instead of paying 62k in employer social security taxes, “borrow” the money interest and penalty free, for 1-2 years.
Under the new executive order, a company can defer collecting and paying the employee portion of payroll taxes, for employees that earn less then 4K bi-weekly, for the period 9/01/2020-12/31/2020 and pay it by May 1st 2021.
The cares act deferral is essentially a free 1-2 year loan to the employer, while the executive act is a 4 month loan to the employee.
My view would be, that if an employer can use the extra money, there is no reason why they shouldn’t utilize the payroll deferral under the cares act.
However I don’t see the advantage of deferring an employees tax, and giving them a higher take home pay, at the expense of reducing their take home pay next quarter.
I read the article about payroll tax deferrals under the new executive order and CARES Act and it explains how employers could delay paying some Social Security tax payments to help cash flow during tough times, though the deferred amounts still have to be paid later and the rules only applied to certain portions of the tax. One finals week when I had too many assignments at once I actually used pay to do my class that time so I could finish early and still study for other tests.That made me think how planning ahead and clearing stuff early can ease stress when big tasks stack up.
Richlook jewellery reflects luxury that feels personal and timeless. Each ornament is made with dedication to design, precision, and finish. The brand offers a wide range of jewellery that caters to every style preference. Richlook jewellery enhances your natural beauty while adding sophistication to any attire. Crafted with love, every piece radiates confidence and charm. Whether it’s a gift or a personal treasure, Richlook jewellery remains a symbol of elegance and grace.
Very informative post on payroll tax deferrals under the new executive order and the CARES Act! It shows how important it is for businesses to stay updated with policies that affect financial planning. In a similar way, companies also need to stay updated with digital trends to remain competitive. Partnering with the Best Digital Marketing Agency in Rajasthan ensures that businesses not only manage their online presence effectively but also grow consistently. Agencies like Yashika Infotech Services deliver strategies that drive measurable results and long-term success.
Daily Bet stands out because it offers more than just games—it offers a lifestyle of daily fun. From cricket and football to card-based games like teen patti, everything is wrapped into one engaging space. I think what makes it so appealing is the regularity—you can depend on it to bring joy every day. This consistency builds excitement and makes the platform something you look forward to. For anyone who enjoys sports and interactive games, this is the ideal place to stay active and entertained. I’d definitely recommend Daily Bet as a go-to for daily enjoyment!
sometimes words aren’t needed. a ball gag brings silence, amplifying physical expression and emotional intensity. it creates a perfect blend of control and surrender. whether exploring bdsm or deepening trust, this tool unlocks a hidden level of intimacy, transforming ordinary play into passionate and adventurous erotic discovery.