Sage HRMS and Sage Abra Suite: Deferring U.S. Payroll Tax Obligations

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.

For Sage HRMS, see Sage Knowledgebase article 106672 for the suggested setup and workflow for deferring U.S. payroll taxes. And for Sage Abra Suite, see Sage Knowledgebase article 106692.

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.

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