Payroll Vital to National Tax System, APA Says in SSA/IRS Reporter
The SSA/IRS Reporter, Summer 2021 (Pub. 1693, rev. 9-2021) contains three articles written by APA:
- IRS Data Affirms Payroll’s Vital Role in Nation’s Tax System
- Payroll Management and the New Juneteenth Federal Holiday
- IRS Issues Guidance on Dependent Care Assistance Programs
The first article examines the release of the 2020 IRS Data Book, which provides statistics that underscore the importance of payroll professionals to the integrity of the American tax system. According to the IRS Data Book, of the approximately $3.49 trillion paid into the Treasury in fiscal year 2020 (October 1, 2019 – September 30, 2020), nearly $2.47 trillion was transmitted by employers for employment taxes. That translates to 70.65% of all federal revenue.
The second article explains the process for employment tax deposits regarding the newest federal holiday. On June 17, President Biden signed S. 475, the Juneteenth National Independence Day Act, into law, which made Juneteenth a new federal holiday starting in 2021. The official holiday was observed on June 19, but in 2021 it was observed on June 18 because June 19 was a Saturday.
In the third article, APA provides details on IRS guidance that clarifies amounts attributable to carryovers or extensions for dependent care assistance programs for 2021 and 2022 are generally not taxable.
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Alice P. Jacobsohn, Esq., is Director of Government Relations for APA.