Donaghy Tax Consulting

May Need Your Help in Considering Options about Payroll Tax Deferral The Aug. 28, 2020 release of IRS Notice 2020-65 provides guidance on the Presidential Memorandum to defer the withholding, deposit, and payment of the employee share of Social Security tax. While the deferral may be appealing to eligible employees, there are potential implications andrisks for businesses. As a result, your clients may be relying on your advice to make the most informed decision for their si...tuation. Some details regarding the guidance: Employers are not required to offer the payroll tax deferral to employees. The deferral is on the employee share (6.2%) of Social Security payroll tax. The deferral period is from Sept. 1, 2020 to Dec. 31, 2020. Taxes may only be deferred for employees whose applicable wages are less than $4,000 on a bi-weekly pay period (or equivalent amount in other pay frequencies). The deferral is based on a pay period by pay period basis. This is only a deferral; the guidance does not indicate taxes will be forgiven. Employers are responsible for collecting and paying back any deferred taxes. Payments would be due between Jan. 1, 2021 and April 30, 2021. Penalties and interest on unpaid amounts begin accruing May 1, 2021. Employers are responsible for paying the deferred tax for individuals who took the option, even if they no longer work for the business, whether by termination or their own decision.

IRS portal is update! Treasury, IRS unveil online application to help with Economic Impact Payments; Get My Payment allows people to provide direct deposit information and gives payment date

1st Stimulus Checks hit bank accounts today!!!!!

Direct Deposit of Stimulus Payment - Based on the latest information we have, the IRS still plans to offer an online portal for the purpose of collecting deposit information from taxpayers who haven’t provided it on their 2018 or 2019 tax return. Providing account information is not required to receive a stimulus payment. Checks will be mailed if deposit information is not available.

Update: Stimulus Payments and Social Security Recipients The IRS has announced that Social Security recipients will automatically receive economic impact payments. Those receiving Social Security benefits who don’t typically file a tax return will not need to file an abbreviated (simple) tax return to receive their stimulus payment. The IRS will use information from Forms SSA-1099 and RRB-1099 to generate payments for these individuals. The payment will be sent as a direct deposit or check, however they normally receive their benefits.

Main Phone line is down AT&T is working on it! backline is 559-228-1154Main Phone line is down AT&T is working on it! backline is 559-228-1154