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: Employers can no longer defer the employer portion of Social Security taxes on paychecks dated on or after January 1, 2021. 50% of the deferred Social Security taxes are due by December 31, 2021, with the remainder due by December 31, 2022.|
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.
Your steps depend on which product you have.
Set up your payroll to track deferrals
Learn how to track your deferred Social Security tax payments by selecting your product:
|Note: Under the CARES Act, you may also qualify for Employer Retention Credits.|