Does PPP Loan Forgiveness
Prevent Your Business from Deferring Payroll Tax?  

Good news! The Paycheck Protection Program (PPP) Flexibility Act of 2020 was signed into law on June 5. The new law repeals a provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that could disallow the payroll tax deferral privilege for some taxpayers that receive PPP loans that are later forgiven.

So, the payroll tax deferral privilege (see main article) is now fully available to taxpayers that benefit from forgiven PPP loans. Apparently, the same is true for self-employed individuals who take advantage of the self-employment tax deferral privilege and benefit from forgiven PPP loans.


111 E. 27th St. Bryan, TX 77803

Ph. (979) 268-1350

Fax: (979) 268-1560


217 E. Washington Ave. Navasota, TX 77868

Ph. (936) 825-6507

Fax: (936) 825-6508

  • Grey Facebook Icon
  • Grey LinkedIn Icon
  • Instagram

(c) 2020 Brewer, Eyeington, Patout & Co. LLP. Partner with Audience Media Group.