December 21, 2021

2021 – 12/16

Before the new year, the IRS reminds businesses of changes that may affect their taxes. Here’s a quick look at two. The CARES Act allowed employers to defer payments of Social Security taxes from the original 2020 due dates. By Jan. 3, 2022, 50% of the deferred amount must be paid, to avoid penalties and interest. The remainder must be paid by Jan. 3, 2023. Due to complexities involved, employers are advised to rely on their tax advisors. Another change is a temporary easing of the per diem rules. For 2021 and 2022 only, businesses may take a 100% deduction for the meal portion of a per diem rate attributable to food or beverages provided by a restaurant.