May 2020 Archives

Impact of COVID-19 on federal payroll taxes

Payroll taxes make up about 2/3 of the IRS' annual revenue. With the COVID-19 pandemic sweeping the globe and unemployment at an all-time high, the IRS is expecting a significant decline in this revenue, meaning after the panic has ended, they will need to replenish this deficit. So how will the IRS likely go about recouping this loss? They are likely to aggressively pursue employers looking for back payroll taxes that may be owed.

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