--- title: IRS Clarifies Availability of CARES Tax Deferral with PPP Loan - Ahola description: On April 10, the IRS clarified the availability of CARES Act Payroll Tax Deferrals with the Paycheck Protection Program Loan forgiveness. Learn more here. image: https://blog.ahola.com/hubfs/Imported_Blog_Media/qtq80-OXNhnr-2.jpeg --- Start typing and press Enter to search * * # IRS Clarifies Availability of CARES Tax Deferral with PPP Loan [Home](https://www.ahola.com/) » [News & Events](https://blog.ahola.com/irs-clarifies-availability-of-cares-tax-deferral-with-ppp-loan) » IRS Clarifies Availability of CARES Tax Deferral with PPP Loan [2020-04-14%2010:20:18](2020-04-14%2010:20:18) ![](https://blog.ahola.com/hubfs/Imported_Blog_Media/qtq80-OXNhnr-2.jpeg) ## IRS Clarifies Availability of CARES Tax Deferral with PPP Loan By [ aholaadmin ](https://blog.ahola.com/author/aholaadmin)  Posted [ April 14, 2020](2020-04-14%2010:20:18)  In  [Payroll](https://blog.ahola.com/tag/payroll), [Human Resources](https://blog.ahola.com/tag/human-resources), [Managing COVID-19](https://blog.ahola.com/tag/managing-covid-19), [Tax Compliance](https://blog.ahola.com/tag/tax-compliance), [Employees](https://blog.ahola.com/tag/employees) - - - - - [**On April 10, the IRS released a set of frequently asked questions**](https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020) regarding the availability of CARES Act Tax Deferrals and the Paycheck Protection Program (PPP). The IRS does indeed clarify that employers that take loans under the PPP are eligible to defer payments of the employer’s portion on Social Security tax through the date the lender issues a decision to forgive the loan, in accordance with the CARES Act. Prior to this update from the IRS, taxpayers who take covered loans under the Paycheck Protection Program (PPP) and whose loans are forgiven under the terms of the CARES Act were not identified as eligible for the deferral described above. ### Official IRS Update All employers may defer the deposit and payment of the employer’s share of social security tax. However, employers that receive a loan under the Small Business Administration Act, as provided in section 1102 of the CARES Act (the Paycheck Protection Program (PPP)), may not defer the deposit and payment of the employer’s share of social security tax due on or after the date that the PPP loan is forgiven under the CARES Act. Employers who have received a PPP loan, but whose loan has not yet been forgiven, may defer deposit and payment of the employer’s share of social security tax that otherwise would be required to be made beginning on March 27, 2020, through the date the lender issues a decision to forgive the loan in accordance with paragraph (g) of section 1106 of the CARES Act, without incurring failure to deposit and failure to pay penalties. Once an employer receives a decision from its lender that its PPP loan is forgiven, the employer is no longer eligible to defer deposit and payment of the employer’s share of social security tax due after that date. However, the amount of the deposit and payment of the employer’s share of social security tax that was deferred through the date that the PPP loan is forgiven continues to be deferred and will be due on the “applicable dates,” as described below: 1. On December 31, 2021, 50 percent of the deferred amount; and 2. On December 31, 2022, the remaining amount. [**Read the full IRS update here with more FAQs.**](https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020)     ### Reply a Comment ## RELATED POSTS [![](https://blog.ahola.com/hubfs/Imported_Blog_Media/webinar-4-4.png) ](https://blog.ahola.com/5-things-business-owners-can-do-to-protect-their-organization-from-covid-19) [[Ten Minute Tuesday Webinar] 5 Things Business Owners Can Do to Protect Their Organization from COVID-19](https://blog.ahola.com/5-things-business-owners-can-do-to-protect-their-organization-from-covid-19) [![](https://blog.ahola.com/hubfs/Imported_Blog_Media/understanding-ffcra-tax-credits-1-1-1.png) ](https://blog.ahola.com/how-to-track-and-pay-ffcra-sick-leave) [How to Track and Pay FFCRA Sick Leave](https://blog.ahola.com/how-to-track-and-pay-ffcra-sick-leave) [![](https://blog.ahola.com/hubfs/Imported_Blog_Media/qtq80-PXiCIi-4.jpeg) ](https://blog.ahola.com/understanding-the-cares-act-employee-retention-credit) [Understanding the CARES Act: Employee Retention Credit](https://blog.ahola.com/understanding-the-cares-act-employee-retention-credit) ## SUBSCRIBE ### Recent posts - [Professionalizing HR Without Losing Your Family Culture ](https://blog.ahola.com/professionalizing-hr-without-losing-your-family-culture) - [Why Encouraging Employees to Take Summer Vacation Benefits Your Workplace ](https://blog.ahola.com/why-encouraging-employees-to-take-summer-vacation-benefits-your-workplace) - [Ahola Named a 2026 Top Workplace — Six Years Running! ](https://blog.ahola.com/ahola-named-a-2026-top-workplace) - ### Topics - [Affordable Care Act (13)](https://blog.ahola.com/tag/affordable-care-act) - [Benefits (223)](https://blog.ahola.com/tag/benefits) - [Cybersecurity (1)](https://blog.ahola.com/tag/cybersecurity) - [Employee Engagement (255)](https://blog.ahola.com/tag/employee-engagement) - [Employees (603)](https://blog.ahola.com/tag/employees) - [Family Business Insights (10)](https://blog.ahola.com/tag/family-business-insights) - [Hiring (282)](https://blog.ahola.com/tag/hiring) - [Human Resources (645)](https://blog.ahola.com/tag/human-resources) - [Laws/Policies (26)](https://blog.ahola.com/tag/laws-policies) - [Managing COVID-19 (153)](https://blog.ahola.com/tag/managing-covid-19) - [News Release (56)](https://blog.ahola.com/tag/news-release) - [Offboarding (3)](https://blog.ahola.com/tag/offboarding) - [onboarding (7)](https://blog.ahola.com/tag/onboarding) - [Payroll (428)](https://blog.ahola.com/tag/payroll) - [Recruiting (142)](https://blog.ahola.com/tag/recruiting) - [Safety (121)](https://blog.ahola.com/tag/safety) - [Tax Compliance (230)](https://blog.ahola.com/tag/tax-compliance) - [Time & Attendance (124)](https://blog.ahola.com/tag/time-attendance) - [Training & Development (214)](https://blog.ahola.com/tag/training-development) - [Trending Topic (75)](https://blog.ahola.com/tag/trending-topic) - [Uncategorized (1)](https://blog.ahola.com/tag/uncategorized) - [Webinars (69)](https://blog.ahola.com/tag/webinars) - [Workers Comp (1)](https://blog.ahola.com/tag/workers-comp) [see all topics](https://blog.ahola.com/irs-clarifies-availability-of-cares-tax-deferral-with-ppp-loan#) ### GENERAL DISCLAIMER This blog is for informational and educational purposes only. 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