The National Association of Homebuilders provided the following information regarding the recent signing into law of the Paycheck Protection Program Flexibility Act, which makes a number of changes to the Payroll Protection Program (PPP). Chief among them, according to the association, is that PPP loan borrowers that reach the thresholds to have their loan forgiven are now eligible to delay their payroll tax payments.

 
The original CARES Act blocked businesses who have their PPP loan forgiven from availing themselves of this delay. With this prohibition now lifted, all businesses - regardless of PPP status - may take advantage of the payroll tax delay.

For payroll taxes due from March 27 through the end of 2020, employers and self-employed individuals may defer payment of the employer share of Social Security taxes they are responsible for paying. This allows employers and those who are self-employed to save temporarily on the employer's 6.2% Social Security tax on wages. Employees must continue to submit their portion of the Social Security tax.

According to the NAHB, businesses should view this as an interest-free loan, as these delayed taxes must be repaid. Half of the deferred amount is due by Dec. 31, 2021. The balance is due by Dec. 31, 2022.

https://tinyurl.com/ycskyt6x