Borrowers participating in the Paycheck Protection Program (PPP) just received another benefit from the IRS. In addition to the low interest rates and possible tax-free loan forgiveness, borrowers are eligible to defer paying the employer portion of social security payroll taxes from March 27, 2020 until their PPP loan is forgiven.
The amount of the deposit and payment of the employer’s share of social security tax that is deferred until loan forgiveness will be payable in two installments: 50% due on December 31, 2021 and the remainder on December 31, 2022.
