Social Security Deadline: Deferred Tax Payments Due Jan. 3

Social Security Deadline: Delayed Tax Payments Due Jan. 3

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Employers and self-employed individuals who chose to defer paying part of their 2020 Social group Security tax obligation moldiness make a payment by Jan. 3, 2022. While some acceptable reminder billing notices from the IRS, the agency also notable that those affected are stock-still required to make a tax defrayal, even if they never received a bill.

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"Eastern Samoa part of the COVID relief provided during 2020, employers and freelance people could select to dishearten paying the employer's ploughshare of their eligible Social Security tax liability, normally 6.2% of payoff," according to the IRS admonisher. "Half of that deferment is now due on January 3, 2022, and the other half connected January 3, 2023."

The delegacy added that under separate COVID relief, employers could choose to waive withholding tax Social Security taxes from eligible employees in 2020, and instead withhold task this year and then earnings those amounts to the IRS.

To repay postponed taxes, employers and individuals commode make a payment through the Electronic Federal Taxation Payment System (EFTPS) operating room by credit, debit scorecard, money order or halt. To follow credited properly, the IRS advises that deferred tax payments be made separately from other taxation payments.

To pay through EFTPS, there's an option to reach a deferral payment. On the Tax Type Selection, choose Deferred Social Security Tax. Modify the date to the applicable task period, which is the calendar quarter in 2020 for which tax was deferred.

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Private taxpayers rear also use the IRS service Direct Pay. Select "balance cod" as the reason for payment. If remunerative with a debit or credit card, blue-ribbon "installment understanding" and apply the payment to the 2020 task yr where the payment was deferred. Direct Pay is simply available Mon to Saturday midnight to 11:45 p.m. ET and Sunday 7 a.m. to 11:45 p.m. ET.

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Josephine Nesbit is a freelance author specializing in real estate and personal finance. She grew up in Newfound England only is now based out of Ohio where she attended The Ohio State University and lives with her ii toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotchman Guide.