Employers Have Limited Extension For Payment Of Social Security Taxes

Husch Blackwell LLP

Pursuant to the CARES Act, many employers took advantage of the ability to defer payment of the employer portion of certain social security taxes that were otherwise due during 2020. Some have asked questions about whether these rules have been modified by the new stimulus law (the Consolidated Appropriations Act, 2021). The short answer is no. Fifty percent of the deferred 2020 amounts must be paid by December 31, 2021, and the remaining fifty percent must be paid by December 31, 2022.

Also, in August 2020, President Trump issued a presidential memorandum that allowed employers to permit employees to elect to defer the employee portion of certain social security taxes. Consistent with that memorandum, the IRS issued Notice 2020-65. In our experience, few employers opted to extend this election to their employees because of potential complexities and unanswered questions relating to the collection and payment of the taxes. For those employers that adopted the relief afforded by the presidential memorandum and IRS Notice 2020-65, the deferred payments were to be paid during the period January 1, 2021 through April 30, 2021. Under the new stimulus law, the law extends the deadline for the collection and payment of these taxes to December 31, 2021.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Husch Blackwell LLP | Attorney Advertising

Written by:

Husch Blackwell LLP

Husch Blackwell LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.