Deferred Social Security Payments are Due 12/31/22

The IRS is reminding employers and those who are self-employed, who deferred paying part of their Social Security tax in 2020, that the second installment of that deferred amount is due on December 31, 2022. See the IRS notice here.

In 2020, employers could defer paying the employer’s share of Social Security tax, and self-employed people could choose to defer 1/2 of their Social Security tax liability. This was done as part of the COVID relief that was provided by the government. These deferred taxes could then be paid in two installments. The first was due 12/31/21, and the second installment is due 12/31/22.

Earlier this fall, the IRS sent reminder notices to those affected by these deferments. They also say, however, that those affected are still required to make the payment on time, even if they did not receive a notice.

Options for paying the deferred taxes

Employers and individuals have several options for making this payment. Deferral payments can made through the Electronic Federal Tax Payment System (EFTPS)Direct Pay, by debit card, credit card or digital wallet, or with a check or money order. No matter which payment option is chosen, it must be made separately from other tax payments and deposits. This will ensure that it is credited properly and will help avoid follow-up bills or notices.

Note. The IRS does not charge a fee for credit card or digital wallet payments; however, the third-party payment processor does.

Please contact your HW&Co. tax advisor, or visit the IRS website for more information.