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IRS Provides Guidance for Payroll Tax Deferrals and Credits

Delay of Payment of Payroll Taxes Penalty and Interest Relief

                Under the CARES Act, provision was made for the delay in the payment of the employer portion of the Social Security, Medicare, and Railroad Retirement taxes for wages accrued during the period beginning March 27, 2020 and ending December 31, 2020. Instead of being due on the regular due date for the employer to deposit the taxes, one-half of the employer portion of the taxes for that period would be due on December 31, 2021, and the remaining one-half on December 31, 2022. Employers and self- employed individuals are both eligible for this relief provided they have not had indebtedness forgiven under either Sections 1106 or 1109 of the CARES Act. 

                What was not addressed was the imposition of interest and penalty for failure to make timely deposits of payroll taxes. This was resolved in Notice 2020-22 which was released on March 31, 2020.  Provided the employer pays the amounts by the due dates (December 31, 2021 and December 31, 2022), no penalty or interest will be imposed. However, this does not relieve the employer of making timely deposit of all employee withheld taxes and filing the quarterly Form 941.  

Advance Payment of Employer Credits Due to COVID-19

                On March 31, 2020, the IRS also released Form 7200, Advance Payment of Employer Credits Due to COVID-19. This form allows employers (but not self-employed individuals) who are eligible for tax credits for qualified sick and qualified family leave wages as well as the employee retention credit to request an advance payment of the credits that they will claim on the Form 941, 943, 944 series or Form CT-1. 

                This form may be filed for an advance payment of any credits that an employer anticipates receiving before the end of the month following that quarter.  Simply put, you must file this Form before you file the appropriate quarterly tax reporting form that you normally file.  It is important to remember not to file to request an advance payment for any anticipated credits if you have already reduced your deposits for those amounts. Of particular note is that Form 72 MUST be fax filed to (855) 248-0552.

Date Clarification for Payments Eligible for Qualified Sick and Qualified Family Leave Under FFCRA

                The IRS has also released Notice 2020-21 which states that the official dates between which wages earned (not paid) during the period April 1, 2020, and December 1, 2020, are those which are eligible for the credit. It was further stated in the FAQs on the IRS website that it is the date they are earned or accrued and not the date that the actual payment is made which is key. Therefore, the actual payment may occur in January 2021, but still be an eligible amount. 

For questions, or more information, please contact BMD Tax Member Priscilla Grant at pag@bmdllc.com or 330.253.5934.

El Contrato Escrito: La Herramienta Predilecta

No existe mejor herramienta a una disputa contractual que un documento firmado por las partes en el cual se expongan las obligaciones y acuerdos entre éstas.

New State Budget Institutes Licensure Requirement for Ohio’s Hospitals

On July 1, 2021, Governor Mike DeWine signed Ohio’s final budget codified at Ohio Revised Code 3722.01 et seq., which includes a new licensing requirement for Ohio’s hospitals. For years, Ohio was the only state in the country that did not license its hospitals. This approach will now be replaced with new, detailed requirements that will require careful review and compliance. Here are some of the highlights concerning these new changes:

Healthcare Provisions in the Ohio FY 22-23 Budget

Governor Mike DeWine signed Ohio’s Fiscal Year 2022-2023 budget bill (HB 110) into law on July 1, 2021. At almost 1,000 pages and 74.1 billion dollars, the budget lays out the State’s spending for the next two years. Below are a few highlighted provisions from the budget that will be important for the healthcare industry in Ohio

Interim Final Rule for Surprise Billing

In an effort to implement the new bipartisan No Surprises Act, on July 1, 2021, the Department of Health and Human Services (HHS), along with the Departments of Labor and Treasury, issued an interim final rule to safeguard patients against unforeseen medical bills arising from out-of-network care.

President Biden Seeks to Limit Non-Compete Agreements

Today, President Biden announced he would issue an Executive Order that calls on the Federal Trade Commission (FTC) to adopt rules to curtail worker non-compete agreements. Interestingly, a week ago, the FTC approved changes to its Rules of Practice to modernize and expedite the way it issues Trade Regulation Rules. If you have followed our alerts, we predicted the elimination of non-competes would probably happen. In 2016, then-Vice President Biden was a vocal opponent against non-compete agreements. He led the Obama administration’s initiative seeking to limit or eliminate non-compete agreements. In his presidential campaign, Biden promised to “work with Congress to eliminate all non-compete agreements, except the very few that are absolutely necessary to protect a narrowly defined category of trade secrets . . ..”