![]() The Income Tax Withholding Assistant for Employers may also be used to help determine federal income tax withholding. A draft for the 2021 Publication 15-T was released earlier in November. ![]() The above information will be included in new Publication 15-T (Federal Income Tax Withholding Methods). The publication also includes information on the forms that employers must give to employees and that employees must give to employers, as well as the forms that must be sent to the IRS and the Social Security Administration (SSA).īeginning with the 2020 tax year, the publication no longer includes the percentage method and wage bracket withholding tables, as well as the amount to add to a nonresident alien employee’s wages for figuring income tax withholding. This publication provides guidance on the requirements for withholding, depositing, reporting, paying, and correcting employment taxes. The IRS has released Notice 2020-65 that postpones the withholding and remittance of the employee share of Social Security tax ratably between January 1, 2021, and April 30, 2021. On August 8, 2020, President Trump signed a memorandum allowing employers to defer the employee’s portion of Social Security tax (SS) for employees who earn less than $4,000 biweekly or its equivalent under other pay frequencies from Septemthrough Decemas a form of COVID-19 tax relief. The CARES Act allows employers to defer payment of the employer portion of Social Security and Railroad Retirement Tax Act (RRTA) taxes and allows self-employed individuals to defer payment of certain self-employment taxes through the end of 2020.ĭeferral of withholding and remittance of employee’s share of Social Security tax. FFCRA offsets the costs of providing Qualified Paid Leave, up to certain amounts, with refundable tax credits against employment taxes for qualified leave wages taken beginning Apand ending December 31, 2020.ĭeferral of the employer’s share of Social Security tax. 116-127) requires certain employers to provide paid leave to workers who are unable to work or telework due to circumstances related to COVID-19 (Qualified Paid Leave). The Families First Coronavirus Response Act (FFCRA, P.L. The draft addresses issues such as qualified leave wages for 2020 paid in 2021, the impact of the 2020 COVID-19 related tax credits on the 2021 look-back period and provides further clarification on lock-in letters and invalid W-4 forms. The IRS has issued a draft of the 2021 version of Publication 15 ((Circular E), Employer’s Tax Guide).
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