As part of the COVID relief provided during 2020, employers and self-employed people could elect to defer paying the employer's share of their eligible Social Security tax liability.
Due to the COVID-19 pandemic, employers and self-employed people had the opportunity to defer paying their share of their eligible Social Security tax liability. Normally, this would be 6.2% of wages.
Half of that deferral was due on January 3rd, 2022. The other half is due January 3rd, 2023.
Employers and self-employed workers can make deferral payments through the Electronic Federal Tax Payment System or by credit or debit card, money order, or with check. The IRS recommends that these payments be made separately from other tax payments to ensure proper crediting.
It's important to get your social security tax payments correct, including deferral payments, in order to avoid being out of compliance.
For help with payments, contact PayNW today.