Thomas Cryan Comments on the Benefits of CARES Act Payroll Tax Deferrals in Bloomberg Tax
"COVID's $211 Billion Payroll-Tax Lifeline Shifts Burden to 2021"
Thomas Cryan commented on the benefit provided by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) payroll tax deferrals. The CARES Act allows companies to postpone payment of their portion of Federal Insurance Contribution Act taxes. Businesses will pay back half of the deferred amount in 2021 and the remainder in 2022. Cryan believes this would appeal to a lot of big companies stating that, "[l]arger employers are viewing this as a free loan that they can use for cash flow purposes and pay it back without interest over the next two years. It's a no-brainer."