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Additional Guidance on Deferral of Employment Tax Deposits and Payments under CARES Act

On Friday, April 10, 2020, the Internal Revenue Service offered some additional guidance to taxpayers who are benefiting from some of the relief provisions of the CARES Act. One such provision allows employers to defer the deposit and payment of the employer’s share of FICA (Social Security taxes) incurred through December 31, 2020. These deposits can be deferred until December 31, 2021 for 50% of the deferred amount and until December 31, 2022 for the remaining amount. The employer’s share of Medicare taxes, employee’s share of FICA and Medicare taxes, and employee federal tax withholding amounts are NOT eligible for deferral and should be timely remitted per the normal deposit schedule.

Prior to Friday’s guidance, it was commonly believed that this deferral was not available for employers who were taking advantage of the forgivable loans offered under the Paycheck Protection Program (PPP). However, the IRS clarified that recipients of PPP loans can defer their share of employment taxes as noted above up to the date that they receive a decision from their lender forgiving the loan. The amounts deferred up to this date can remain so until the due dates mentioned above (December 31, 2021 and 2022).

It should be noted that penalties can be assessed for failure to correctly and timely deposit payroll taxes. It is imperative the rules regarding what portion of payroll taxes can be deferred are fully understood to avoid penalty assessment.

If you would like to learn more about how you or your business can benefit from this guidance please contact your local Blue & Co. advisor.

Physician Fee Schedule: 2023 CMS Final Ruling

The Centers for Medicare & Medicaid Services (CMS) operates within a budget neutral approach. This occurs at the same time the healthcare community continues to try and find balance between reducing administrative burdens, accurately recognizing and recording services provided, and upholding the highest quality care possible. Over the last three years, there have been significant […]

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Blue & Co., LLC acquires Alerding CPA Group

Blue & Co., LLC acquires Alerding CPA Group

Carmel, Ind. (November 23, 2022) – The accounting and consulting firms of Alerding CPA Group (Indianapolis, Ind.) and Blue & Co., LLC (Carmel, Ind.) have announced their merger. The combined firm will operate as Blue & Co., LLC (Blue & Co.), effective December 1, 2022. This acquisition will provide Blue & Co. with greater market […]

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Not-for-Profit Single Audit Requirements – Evaluation of Revenue Sources

By: Holly Fields, CPA, Senior Manager Not-for-profit organizations (NFPs) that receive federal financial assistance over certain levels, either directly from a federal agency or indirectly through state or local agencies, may be required to have a single audit performed under Federal Uniform Guidance. Single Audit Requirements A single audit includes not only an audit of […]

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