Pub. 2 2020 Issue 4

19 nebraska society of cpas W W W . N E S C P A . O R G required to be made during the period beginning on March 7, 2020, and ending December 31, 2020. (Section 2302 of the CARES Act calls this period the “payroll tax deferral period.”) Applicable Dates The payment for applicable employment taxes between March 27, 2020, and January 31, 2021, won ’ t be due before the applicable dates. The applicable dates are: 1. December 31, 2021, for 50% of employment and self- employment taxes 2. December 31, 2022, for the remaining 50%of those amounts. An employer is treated as timely in making all deposits of applicable employment taxes required if all such deposits are made by the applicable date. Self-Employed Individuals Self-employed individuals may defer the payment of 50% of the self-employment tax on net earnings for the period beginning on March 27, 2020, and ending December 31, 2020. The deferred payment amounts are due on December 31, 2021, for 50% of employment and self-employment taxes, and December 31, 2022, for the remaining 50% of those amounts. PPP Loan Coordination Employers who have received a PPP loan may defer deposit and payment of the employer’s share of Social Security tax that otherwise would be required to be made beginning on March 27, 2020, through the date the lender issues a decision to forgive the loan, without incurring failure to deposit and failure to pay penalties. Once an employer receives a decision from its lender Results Realized Collaborating with Companies and CPA Firms on: − State Tax Audits − State Tax Appeals − State Tax Planning − State Tax Incentives − State Business Incentives − Site Development Incentives − Property Tax Appeals McGrath North  First National Tower, Suite 3700  1601 Dodge Street  Omaha, NE 68102 www.mcgrathnorth.com  www.nebraskastatetax.com Matt Ottemann, JD, LLM State & Local Tax & Incentives Attorney Partner, McGrath North 402-633-9571 mottemann@mcgrathnorth.com Nick Niemann, JD State & Local Tax & Incentives Attorney Partner, McGrath North 402-633-1489 nniemann@mcgrathnorth.com that its PPP loan is forgiven, the employer is no longer eligible to defer deposit and payment of the employer’s share of Social Security tax due after that date. However, the amount of the deposit and payment of the employer’s share of Social Security tax that was deferred through the date that the PPP loan is forgiven continues to be deferred and will be due on December 31, 2021, for 50% of employment and self-employment taxes, and December 31, 2022, for the remaining 50% of those amounts. t Read more about the deferral of payroll tax deposits in the IRS FAQs at https://www.irs.gov/newsroom/deferral-of-employment-tax-depos- its-and-payments-through-december-31-2020. For more information, contact Western CPE’s customer service center at (800) 822-4194 or wcpe@westerncpe.com . ©2020 Vern Hoven and Sharon Kreider An employer is treated as timely in making all deposits of applicable employment taxes required if all such deposits are made by the applicable date.