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Intuit

Track your deferral payments for Social Security tax payments

Learn how to set up your payroll to track deferrals of the employer share of Social Security tax payments.

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, you may be able to defer a portion of your Social Security Tax payments and your payroll can help you track that amount.

Note: You’re responsible for remitting payments to the IRS on the new 2021 and 2022 due dates. You can set up a reminder to notify you when the new payment dates are nearing.

How does the CARES Act tax deferral work?

  • Eligible employers may defer the payment of the employer share of the Social Security taxes that accrue from March 27, 2020 through, and including, December 31, 2020.
  • The payment includes 6.2% of wages up to the Social Security ceiling.
  • 50% of the deferred Social Security taxes are due by December 31, 2021, with the remainder due by December 31, 2022.
  • The deferral of Social Security taxes is not available for taxes that are due to be deposited after you receive debt forgiveness under the Paycheck Protection Program.
Note
  • You, as the employer, are responsible for tracking and submitting the deferred payments.
  • If you have any questions about the CARES Act or deferring the employer portion of social security, please talk with your accountant or accounting professional.

Your steps depend on which product you have.

If your sign-in screen looks like this, you use QuickBooks Online Payroll. If your sign-in screen looks like this, you use Intuit Online Payroll.

Set up your payroll to track deferrals

Learn how to track your deferred Social Security tax payments by selecting your product:

You’ll need to turn this feature on.

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

You’ll need to turn this feature on.

  1. Go to the Setup tab
  2. Under the CARES Act section, select the Employer Social Security deferral link.
  3. Check the box next to I want to defer my employer portion of Social Security, and select OK.

You’ll need to turn this feature on.

  1. Go to the Account Settings tab.
  2. Select Edit next to the Employer Social Security deferral under the CARES Act section.
  3. Check the box next to I want to defer my employer portion of Social Security, and select OK.

You’ll need to set up payroll items to track your employer portion of the social security payments.

Step 1: Set up the payroll item to track the deferral

Note: If you have QuickBooks Desktop Payroll Assisted, you need to contact Customer Support to activate the deferral credit in and then follow the steps below to set it up.
  1. Go to the Employees menu, then Manage Payroll Items, then select New Payroll Item.
  2. Select Custom Setup, then select Next.
  3. On the Payroll item type window, select Other Tax, then select Next.
  4. On the Other tax window, select CARES Co. Soc. Sec. Deferral, and then Next.
  5. In the Name used in paychecks and payroll report window, enter CARES Co. Sec. Sec. Deferral in the text field, then select Next.
  6. In the Agency for company-paid liability window, select the agency you pay taxes to from the dropdown, select Payroll Liabilities in the Liability account dropdown, and select Payroll Expenses in the Expense account dropdown, and then select Next.
  7. From the Taxable Compensation Window, select Finish.

Step 2: Create a check to pay the payroll liabilities

Once you’ve figured out how much you owe, you can now ensure that you’ve created a check to pay the tax liabilities.

  1. Go to the Employees menu, then select Payroll Center.
  2. Select the Pay Liabilities tab.
  3. In the Pay Taxes & Other Liabilities section, mark the Federal 941, make sure the check amount and item list under Payroll Liabilities are accurate, and then select View/Pay.
  4. Go to the Payroll Liabilities tab and in the Payroll Item drop-down enter the CARES Co. Soc. Sec. Deferral and the amount of the 941 tax liabilities you qualify for. You will need to enter the amount as a negative amount. Select Recalculate to adjust the liability.
  5. Select To be printed if you want to print the check. If you used a handwritten check, enter the check number or other reference in the NO. field. If you pay liabilities by Electronic Funds Transfer (EFT), clear the To Be Printed checkbox and enter EFT in the No. field of the liability check.
  6. Select Save & Next or Save & Close.
  7. You’ll see your Payroll Liability Payment Summary and can then review the payments you scheduled, print a copy of the summary, and print checks.
  8. You can re-run the QuickReport to see the difference in the liabilities credit you are still able to claim if your credit was larger than your liability.

For Assisted payroll subscribers, SS employer deferrals requested after the first paychecks in Quarter 2 will start on the date of request. It will not retroactively defer.

Note: Under the CARES Act, you may also qualify for Employer Retention Credits.

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