Sage 300 U.S. Payroll: Executive Order on deferring payroll tax obligations in light of COVID-19 and your options in Sage 300 Payroll

Sage has completed our review of the August 8 Executive Order related to COVID-19, and the subsequent guidance from the Treasury, and have developed instructions for you to use to defer payroll taxes in Sage 300 U.S. Payroll.

Before deciding to defer payroll taxes, we recommend talking with your CPA or financial advisor. If you choose to defer payroll taxes, here are some ways you may protect yourself and your employees when implementing the deferral:

  • Ensure your employees understand that the deferred Social Security taxes must be paid back between January 1 and April 30, 2021.

Note: This amount may be paid back by withholding twice the normal amount between January 1 and April 30, 2021 or by any other means your organization decides.

  • Have a repayment plan in place for all circumstances, including wage or personnel changes.

For guidance on deferring U.S. payroll taxes in Sage 300 U.S. Payroll, see Sage Knowledgebase article 106660.

We are continuing to monitor changes to 941 and W2 reporting and will be updating our applications as changes are announced and finalized by the IRS.

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