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Siddhartha
Level 1

Can i defer only employee's social security tax in the payroll, which I will process through QuickBooks online?

 
4 Comments
Rustler
Level 15

Can i defer only employee's social security tax in the payroll, which I will process through QuickBooks online?

I can not answer that question on behalf of intuit payroll, but why would you participate in this program?

 

Deferral means the company and the person has to pay the total amount back next year (first quarter is what I understand).  Seems to me that paying it a little at a time is way better than lump sum.

 

And if the employee does not pay it back lump sum, the employer is the target of the Treasury so they get paid.

treasurer
Level 1

Can i defer only employee's social security tax in the payroll, which I will process through QuickBooks online?

So we don't have to comply with the executive order to give the money to the employees?

CharleneMae_F
QuickBooks Team

Can i defer only employee's social security tax in the payroll, which I will process through QuickBooks online?

Thanks for joining in this thread, treasurer.

 

Allow me to provide details on how the CARES Act tax deferral works. Employers can delay the payment that accrues from March 27, 2020, through December 31, 2020. This includes 6.2% of wages up to the Social Security ceiling. Also, 50% of the deferred Social Security taxes are due by December 31, 2021, and the remainder due by December 31, 2022.

 

Moreover, as an employer, it's important to track and submit the deferred payments. You can reach out to an accountant if you have other questions about deferring the employer portion of social security.

 

You may follow these steps on how to track your deferred Social Security tax payments:

  1. From the Gear icon, select Account Settings.
  2. Choose Payroll Settings.
  3. Under the CARES Act section, select the Employer Social Security deferral link.
  4. Check the box next to I want to defer my employer portion of Social Security and then select OK.

 

Additionally, I've included an article that'll guide you in ensuring your compliance with state payroll tax regulations: Payroll Tax Compliance.

 

If you have other concerns, please let us know. Your success with QuickBooks is our top priority.

chrisbryan
Level 3

Can i defer only employee's social security tax in the payroll, which I will process through QuickBooks online?


@CharleneMae_F 

 

Please re read what you are responding to.  The question has to do with the Executive Order, not the CARES Act.  Your response is based on the CARES Act which allows for Employers to defer the Employer share of social security.  The question asked was about the Executive Order, which allows for Employees to defer their Social Security tax.

 

As a CPA who handles payroll matters for various clients on various payroll platforms, I am astounded on how long Intuit is taking to implement this executive order.  The IRS has issued public guidance.

 

To answer the posters question....Employers are not required to offer to employees the option to defer.  If you have any turnover at all, it could mean you are on the hook for those deferred taxes if an employee leaves your employment prior to "repaying" the deferral in early 2021.  But for employers with a few long term employees it could be beneficial since there is talk that the deferral may be forgiven.

 

Lots of food for thought....but Intuit needs to act quicker AND their support team on these threads needs to pay closer attention to the questions being asked before answering with the wrong answer.  All this is confusing enough without getting incorrect information.

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