14 Dec For a lot of employers and self-employed folks, deferred Social Safety tax fee due Dec. 31
WASHINGTON — The Inside Income Service reminded employers and self-employed people that selected to defer paying a part of their 2020 Social Safety tax legal responsibility that their second annual installment of the deferred quantity is due on Dec. 31, 2022.
As a part of the COVID reduction offered throughout 2020, employers might select to place off paying the employer’s share of their Social Safety tax legal responsibility, which is 6.2% of wages. Self-employed people might additionally select to defer the same quantity of their self-employment tax. Typically, half of that deferral was due on Dec. 31, 2021. The opposite half is due on Dec. 31, 2022.
Earlier this fall, the IRS despatched reminder notices to affected employers and self-employed people. The company famous, nonetheless, that these affected are nonetheless required to make the fee on time, even when they didn’t obtain a discover.
The way to repay the deferred taxes
Employers and people have a number of choices for making this fee. Deferral funds can made via the Digital Federal Tax Cost System (EFTPS), Direct Pay, by debit card, bank card or digital pockets, or with a test or cash order. Irrespective of which fee possibility is chosen, it should be made individually from different tax funds and deposits. This can make sure that it’s credited correctly and can assist keep away from follow-up payments or notices.
Employers and people could make the deferral funds via enrollment within the Digital Federal Tax Cost System, a free service accessible from the Treasury Division. On the Tax Sort Choice display screen, select Deferred Social Safety Tax after which change the date to the relevant tax interval (the calendar quarter in 2020 for which tax was deferred). Go to EFTPS.gov, or name 800-555-4477 or 800-733-4829 for particulars.
Alternatively, self-employed particular person taxpayers can select Direct Pay to pay instantly from a checking or financial savings account. This service is accessible free solely on IRS.gov/funds/direct-pay. Choose the “Stability Due” motive for fee and apply the fee to the 2020 tax yr the place the fee was deferred. Direct Pay is just not accessible to pay employment taxes.
Debit card, bank card or digital pockets
If paying with a bank card, debit card or digital pockets, choose “installment settlement.” Apply the fee to the 2020 tax yr the place the fee was deferred. Notice that the IRS doesn’t cost a fee for this service, however the licensed third-party fee processors do. Go to IRS.gov/Funds for particulars.
Examine or cash order
Make any test or cash order payable to United States Treasury, not IRS. For extra data on the place to mail funds see Directions for Type 941.
Unique content material by irs.gov. This data is supplied with the understanding that Payroll Companions is just not rendering authorized, human sources, or different skilled recommendation or service. Skilled recommendation on particular points must be sought from a lawyer, HR advisor or different skilled.