--- title: Employers with a PPP loan can elect to defer their ER social security tax description: Common question from employers. image: https://www.inflectionhr.com/hubfs/image-55.png --- {% set baseFontFamily = "Open Sans" %} /* Add the font family you wish to use. You may need to import it above. */ {% set headerFontFamily = "Open Sans" %} /* This affects only headers on the site. Add the font family you wish to use. 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The IRS published updated guidance on this very question on April 09, 2020, [click here to read the FAQ](https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-2020). Before this FAQ was posted there was confusion as to whether one could apply for a PPP loan and take the CARES Act credit.  Many people were taking a better safe then sorry approach, avoiding taking the CARES act deferral credit for fear of double dipping or disqualifying their company from a PPP loan.  Thankfully this new guidance makes it crystal clear that a business that applies for a PPP loan may can defer the employer’s share of Social Security tax **until a decision has been reached by the lender as to whether forgiveness will be permitted. ** This gives every business the opportunity to defer at least eight weeks of Social Security tax that would have been owed over the coming weeks until the end of 2021 and 2022. Read the **[CARES Act Social Security Deferment](https://www.inflectionhr.com/covid19/cares-act-social-security-deferment)** notice posted on April 06, 2020 to learn how we can setup and configure your payroll account for this deferment.   ### Solutions [Unified HCM Suite](https://www.inflectionhr.com/cloud-based-hcm-solutions) [Payroll](https://www.inflectionhr.com/cloud-based-payroll-solution) [Time & Labor](https://www.inflectionhr.com/cloud-based-time-and-labor-manager) [HR Management](https://www.inflectionhr.com/cloud-based-human-resources) [ACA Compliance Management](https://www.inflectionhr.com/cloud-based-aca-compliance) [Talent](https://www.inflectionhr.com/cloud-based-talent-acquisition) [Onboarding](https://www.inflectionhr.com/cloud-based-onboarding-solution) [Scheduling](https://www.inflectionhr.com/cloud-based-scheduling) [Analytics ](https://www.inflectionhr.com/analytics-for-hcm) [HR Compliance](https://www.inflectionhr.com/hr-compliance-support) [View All HCM Solutions](https://www.inflectionhr.com/explore-all-hcm-solutions) ### About [Why Us](https://www-inflectionhr-com.sandbox.hs-sites.com/why-choose-inflection-hr-for-your-payroll-and-hr-solution-provider) [Explore Solutions](https://www.inflectionhr.com/explore-all-hcm-solutions) [Our Locations](https://www.inflectionhr.com/locations) ### Explore [@Work Blog](https://www.inflectionhr.com/blog) [HCM Resource Library](https://www.inflectionhr.com/hcm-resource-library) [HCM Solution Downloads](https://www.inflectionhr.com/datasheets) ### Latest Insight ### Connect [Contact Us](https://www.inflectionhr.com/contactus) [Join our Team](https://secure3.yourpayrollhr.com/ta/IHR9999.careers?CareersSearch) [Partners](https://www.inflectionhr.com/partnership) ### Access [Sign In](https://www.inflectionhr.com/login) [Mobile App](https://www.inflectionhr.com/hcm-mobile-application-overview)    [![InflectionHR Current All White](https://www.inflectionhr.com/hs-fs/hubfs/Logo/InflectionHR%20Current%20All%20White.png?width=600&height=77&name=InflectionHR%20Current%20All%20White.png "InflectionHR Current All White")](https://www.inflectionhr.com/) [** ](https://www.facebook.com/Inflection-HR-1039834402759552/) [** ](https://twitter.com/InflectionHR) [** ](https://www.linkedin.com/company/2320584/) [** ](https://www.youtube.com/user/inflectionhr1) Copyright ©  2002 - 2026  Inflection HR ![](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/881512942/?guid=ON&script=0) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Mike McMorran", "url" : "https://www.inflectionhr.com/covid19/author/mike-mcmorran" }, "dateModified" : "2020-05-15T19:57:27.455Z", "datePublished" : "2020-04-16T19:40:41.000Z", "headline" : "Employers with a PPP loan can elect to defer their ER social security tax", "image" : [ "https://www.inflectionhr.com/hubfs/image-55.png" ], "mainEntityOfPage" : { "@id" : "https://www.inflectionhr.com/covid19/i-have-applied-for-and/or-received-my-ppp-loan-can-i-still-defer-the-er-portion-of-my-social-security-tax", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.inflectionhr.com/hubfs/Logo/InflectionHRv216%20-%20Transparent%20-%20%231F3F6CText_%235191CCHR.png" }, "name" : "Inflection HR" } } ``` ```json { "@context": "https://schema.org", "@type": "ProfessionalService", "name": "Inflection HR", "url": "https://www.inflectionhr.com/", "logo": "https://www.inflectionhr.com/hs-fs/hubfs/images/InflectionHRv216%20-%20Transparent%20-%20%231F3F6CText_%235191CCHR-1.png?width=480&height=120&name=InflectionHRv216%20-%20Transparent%20-%20%231F3F6CText_%235191CCHR-1.png", "telephone": "+1-877-449-0676", "address": { "@type": "PostalAddress", "streetAddress": "2325 W Guadalupe Rd", "addressLocality": "Gilbert", "addressRegion": "AZ", "postalCode": "85233", "addressCountry": "US" }, "geo": { "@type": "GeoCoordinates", "latitude": 33.3637983, "longitude": -111.839812 }, "openingHoursSpecification": { "@type": "OpeningHoursSpecification", "dayOfWeek": [ "Monday", "Tuesday", "Wednesday", "Thursday", "Friday" ], "opens": "08:00", "closes": "17:00" }, "sameAs": [ "https://www.facebook.com/TheInflectionHR/", "https://twitter.com/InflectionHR", "https://www.linkedin.com/company/inflection-hr", "https://www.yelp.com/biz/inflection-hr-tempe" ], "areaServed": { "@type": "Country", "name": "United States" }, } ```