Employment Taxes During the COVID-19 Pandemic

The COVID-19 pandemic has changed a lot of things, and
employment taxes are no exception. To help you understand the present state of
employment taxes, I will start by outlining how the employment tax system
normally operates.

How Employment Taxes Normally Work

At each payroll, employers are responsible for a series of
taxes:

• The Federal Insurance Contributions Act (“FICA”)
  tax on employees, which is deducted from their wages, I.R.C. § 3102(a);
• The FICA tax on employers, which is paid
  directly by the employer, I.R.C. § 3111;
• Income tax, which is also deducted from
  employees’ wages, I.R.C. § 3402(a)(1).

With the exception of very small employers, these taxes are reported quarterly on Form 941.… Read More