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 steps for you to use to defer payroll taxes in Sage HRMS or Sage Abra Suite.
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.
Sage is monitoring changes to Form 941 and Form W-2 to report the deferred taxes. We will inform you when the IRS finalizes these changes.
Visit www.SageCity.com/Resources for additional options, including links to Sage Knowledgebase, Sage City, and Sage University, as well as Chat and Online Case submission.