Last week the IRS released guidance on how to report the deferral of withholding, deposits, and payments of certain payroll tax obligations.
Ultimately, employees whose social security taxes are being deferred will see the full amount of applicable wages in box 3 of their W-2s, but the amount in box 4 will be lower than than the typical 6.2% Social Security tax. In 2021 when those taxes are withheld, the amounts in box 4 will be higher than normal.
The IRS noted that instructions for Form W-2 and Form W-3 will be released in January and include these details.
For additional information, see the Journal of Accountancy's article on this update.
Contact your accountant with any questions and remember to follow us on LinkedIn to stay up to date on all of our posts.
The IRS noted that instructions for Form W-2 and Form W-3 will be released in January and include these details.
For additional information, see the Journal of Accountancy's article on this update.
Contact your accountant with any questions and remember to follow us on LinkedIn to stay up to date on all of our posts.
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