President signs legislation providing payroll tax deferral for taxpayers with forgiven PPP loans (COVID-19)

President signs legislation

President Trump today signed into law the “Paycheck Protection Program Flexibility Act of 2020” (H.R. 7010).

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The date of enactment is June 5, 2020.

The Paycheck Protection Program (PPP) was enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (Pub. L. No. 116-136), to provide lending to both small and large businesses.

The new law makes several important changes to the PPP—for instance, it extends the time for the expenditure of funds and eases the requirement that 75% of funds be used for wages. A tax provision of the legislation amends the CARES Act to allow the deferral of payroll taxes without losing forgiveness of indebtedness under the PPP.

Read text of H.R. 7010 [PDF 187 KB]

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