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IRS explains extended payroll tax due dates
Source:
journalofaccountancy.com
- Jan 21, 2021
The IRS has issued guidance (Notice 2021-11) to address how employers who elected to defer certain employees’ payroll taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year.
Notice 2020-65 gave employers the option to defer certain employees’ Social Security taxes from Sept. 1, 2020, to Dec. 31, 2020. This applied to employees paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately. The employee portion of Social Security taxes (Old Age, Survivors, and Disability Insurance, or OASDI) are calculated at 6.2% of employees’ wages (IRS News Release IR-2021-17).
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Category: General Business
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