Social Security Deadline: Deferred Tax Amounts Due Jan. 3

Companies and self-employed persons who opted to delay paying a portion of their 2020 Social Security tax requirement must make a payment by January 3, 2022, or they may be penalized.

Even though many people got IRS billing reminder notifications, the IRS also stated that individuals who were affected are still expected to make a tax payment, even if they never received a bill in the first place.

According to the IRS notice, “a portion of the COVID assistance granted during 2020, corporations and self-employed persons might opt to defer payment of the employer’s portion of their qualified Social Security tax due, which is ordinarily 6.2 percent of earnings.”

According to the IRS, this deferral is now due on January 3, 2022, with the remaining half payable on January 3, 2023.

Must check: America’s health care affordability problem ‘is expanding larger and deeper.’

Employers might opt out of withholding Social Security taxes from qualifying employees in 2020 under a separate COVID relief provision and instead withhold tax this year and pay the amounts to the Internal Revenue Service, the agency explained.

Employers and individuals can return deferred taxes by making payments through the Electronic Federal Tax Payment System (EFTPS) or by using a credit, debit, money order, or check to make the payment.

The Internal Revenue Service recommends that deferred tax payments be correctly paid separately from other tax payments.

There is an option to make a deferred payment if you pay using EFTPS. Deferred Social Security Tax should be selected from the Tax Type drop-down menu. 

Modify the start and end dates to reflect the appropriate tax period, which is the calendar quarter in 2020 during which the tax was deferred.

Individual taxpayers can also use the Direct Pay option provided by the IRS. Select “balance due” from the drop-down menu as the payment reason. 

For those who wish to pay using a debit or credit card, pick the “installment agreement” option, which will apply the payment to the tax year 2020 in which the payment was postponed.

Also read: Snow and cold will make tough post-Christmas travel over the western and northern United States.

Only Monday through Saturday from midnight to 11:45 p.m. ET, and Sunday from 7 a.m. to 11:45 p.m. ET, is Direct Pay accessible for use.

Please keep checking our website for more news and info!

Leave A Reply

Your email address will not be published.