Reminder that 50% of deferred
taxes in 2020 due by 12/31/21.
The CARES Act allowed employers to defer the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes. The payroll tax deferral period began on March 27, 2020 and ended on December 31, 2020.
If you deferred these taxes, the deposits must be made using EFTPS by the following dates to be treated as timely (and avoid a failure to deposit penalty):
• On December 31, 2021, 50 percent of the eligible deferred amount; and
• On December 31,2022, the remaining amount.
For example, if you deferred $20,000 in payroll taxes in 2020, you must at a minimum pay $10,000 no later than 12/31/21, and the other $10,000 by 12/31/22.
Please reach out to your Schwan Financial advisor if you have any questions.