Repayment of Deferred Employer Social Security Taxes

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

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.

More To Explore

Tax

September Tax Newsletter

Tax Saving Tips Save Your Employee Retention Credit In what clearly must have been a mistake, the IRS issued Notice 2021-49 to deny the employee