b'LEGISLATIVEREPORTNew Coronavirus By Ed Welch,Business Tax Provisions PVA Legislative Director May Be of HelpT he CARES Act authorizesDeferral of Payment of Somedue in 2020 is to be paid no later than various types of emergency as- Payroll Taxes December 31, 2021, and the other half sistance for businesses contend- Section 2302 of the law allows anyis to be paid by December 31, 2022. ing with the coronavirus outbreak,employer to defer payment of its shareA self-employed individual can also including the Paycheck Protectionof an employees Social Security tax,take advantage of this Social Security Program (PPP), the SBAs enhancedbeginning as of March 27 and con- tax deferral. Note, however, that this Economic Injury Disaster Loan (EIDL)tinuing for the remainder of calendardeferral is available only for the em-Program, and the Main Street Lending2020. For the year 2020, the Internalployers share of the Social Security tax Program. Less well known is the factRevenue Code would normally require(not the employees share of the tax), that the law also includes two tax pro- an employer to pay 6.2 percent of anor is there any deferral for the employ-visions that may make things easierworkers salary, up to $137,700.ers share of a workers Medicare tax.for an employer. Known as the CARESThese deferred payroll taxes willAn employer who has received a Act, the Coronavirus Aid, Relief, andeventually have to be paid, but theyPPP loan can take advantage of this Economic Security Act was enacted oncan be stretched out over the next 2-1/2payroll tax deferral, at least initially. March 27.years. Half of the amount otherwiseHowever, as of the date that a PPP loan NEW PRODUCTS, SAME LEVEL OF TRUST & DURABILITY.Introducing Highly Configurable Vessel System Monitoring & SMART Alarm Device Power Assist Get-homeSteeringDrivesStabilizers Reversing Thrusters Autopilot PumpKOBELT MANUFACTURING CO. LTD.+1 (604) 572-3935Surrey, BC, Canadawww.kobelt.com30MAY 2020FOGHORN'