Payroll Tax Changes in the CARES Act

Author: Annette Nellen

Among several tax changes in the CARES Act are two providing payroll tax relief for many employers. This webinar explains the employee retention payroll tax credit and the delay for depositing payroll taxes. These rules interact with other credits and tax rules as well as the Families First Coronavirus Response payroll tax credits. Examples and planning considerations are also covered.

Publication Date: May 2020

Topics Covered

• COVID‐19 Legislative and Administrative Overview
• Payroll tax relief in CARES Act
• Employee retention payroll tax credit
• Delay for payment of payroll taxes
• Relevance to other provisions including Families First Coronavirus Response payroll tax credits
• Examples, open issues and planning considerations throughout

Learning Objectives

• Identify payroll tax relief for employers in the CARES Act
• Recognize how such relief interacts with other COVID-19 and general tax provisions
• Recognize the amount of wages per employee
• Identify the new IRS form used to obtain a refundable payroll credit if the payment exceeds the amount of payroll taxes owed
• Describe the Employee Retention Credit for Employers Subject to Closure Due to COVID-19 is equal to what percent of qualified wages of employee

Level
Update

Instructional Method
Self-Study

NASBA Field of Study
Taxes (1 hour)

Program Prerequisites
Basic understanding of tax preparation

Advance Preparation
None