by Kyle Zeigler, Sage Senior Certified Consultant

Sage KB Article 10663covid-piggy-calculator

On August 28, 2020, the US Department of Treasury and Internal Revenue Service issued Notice 2020-65 to provide guidance to employers on the payroll tax relief provided in Trump’s August 8, 2020, Presidential Memorandum. To assist Sage 300 Construction and Real Estate users with tracking and reporting guidance in their Sage 300 CRE software, Sage has issued Knowledgebase Article 10663 in the wake of the IRS 2020-65 tax deferral notice.

Important verbiage from this article is as follows:

Article 106633 – Presidential Memorandum to Defer SOC Taxes

  • For wages paid from September 1, 2020, through December 31, 2020, “employers are allowed to defer withholding, deposit, and payment of the employee’s portion of Social Security tax for wages under $4,000 during a bi-weekly period…. The choice to defer withholding, deposit, and payment of the Social Security taxes is optional.”
  • “Before you decide 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.”
  • A Word document and a report design are linked to this knowledgebase article and are available for download.
    • The Word document provides setup and workflow instructions for tracking and reporting on the deferred Social Security tax for your employees, as well as for the amount recorded in a Deferred Deduction and Deferred Fringe that will be set up according to the instructions.
    • The Deferred SOC Tax Report.rpt report design is to be installed on your system and uses the deduction and fringe to track and report deferred Social Security taxes.
  • Links to the full Presidential Memorandum order and full guidance for the IRS Notice 2020-65 and also provided in the knowledgebase article.

For assistance accessing the knowledgebase article and its attachments or with setting up your Sage system to track and report on deferred Social Security tax, please don’t hesitate to contact ETHOSystems.

More COVID-19 helpfor Sage 300 CRE: Tax Questions Related to COVIS-19 .