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As employment law constantly changes, the attorneys at Bean, Kinney & Korman stay up to date on the law as it develops. Our blog topics focus on those changes and what you need to know about them, ranging from severance agreements and the FLSA to social media in the workplace and recent court decisions. If you are interested in having us cover a specific topic, please let us know.

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  • Posts by Dusko Stojkov
    Shareholder

    Dusko is a shareholder with Bean, Kinney & Korman representing a broad range of clients in tax and corporate finance matters. His practice consists of assisting businesses in handling complex domestic and international tax issues ...

COBRA Subsidies for Employees and Tax Credits for Employers Under the American Rescue Plan Act of 2021

President Biden signed the American Rescue Plan Act of 2021 (the “ARPA”) into law on March 11, 2021. The $1.9 trillion relief package contains several provisions that will impact employers, including a requirement that employers provide “assistance eligible individuals” (defined below) with fully subsidized COBRA continuation coverage premiums for the time period of April 1, 2021 through September 30, 2021, with such costs to be offset by a refundable credit against the employer’s share of Medicare tax under a newly added Internal Revenue Code section.

The IRS Chief Counsel’s Informal Guidance Clarifies Some Issues Left Open after Notice 2020-65 Regarding the “Payroll Tax Holiday”

In addition to Notice 2020-65 and Instructions to Form 941 which we outlined in our recent blog, the IRS Office of Chief Counsel for employee benefits, exempt organizations and employment tax provided informal but insightful guidance on its monthly IRS payroll industry call held on September 3, 2020. The informal guidance was directed in part toward clearing up confusion that remained even after the IRS’s issuance of Notice 2020-65 over whether, or to what extent, employers could simply ignore the “payroll tax holiday” created by the President’s August 8, 2020, Executive Order.

IRS Releases Instructions to Form 941 Expanding on Prior Guidance on Deferral of Social Security Tax

On October 1, 2020, the IRS released instructions for Form 941 providing additional guidelines for reporting deferred Social Security taxes pursuant to the President's Memorandum (discussed previously on our blog) and IRS Notice 2020-65

Background

On August 8, 2020, the Presidential Memorandum directed the Secretary of the Treasury to use his authority pursuant to section 7508A of the Internal Revenue Code to defer the withholding, deposit, and payment of certain payroll tax obligations.