Learn how to collect and pay the Employee Social Security Deferral with QuickBooks payroll products.
If you have QuickBooks Payroll or Intuit Payroll, and deferred Social Security for your employees as outlined in the Presidential Memorandum, you must collect and pay the taxes to the Internal Revenue service.
The collection of the deferred taxes should begin January 1, 2021, and end on December 31, 2021. All taxes must be paid by December 31, 2021.
*Per the IRS Guidance, interest, penalties, and additions to tax will begin to accrue on January 1, 2022.
For more information see:
- What is the Employee Social Security Deferral Memorandum?
- How to set up Employee Social Security Deferral in QuickBooks
Follow the steps for your payroll service.
|Note: Not sure which payroll service you have? Here's how to find which payroll service you have.|
Step 1: Check how much Social Security you've deferred
Step 2: Collect the deferred Social Security amount back from the employee
Step 3: Pay the IRS
After you've collected the deferred amount, you must pay it to the IRS directly.
- If you aren't already enrolled with the IRS EFTPS, you will need to enroll in EFTPS with the IRS.
- Login to the EFTPS with your EIN, your PIN , and Internet Password.
- Remember, when paying you will select the tax period the taxes were accrued in.
- You must schedule payments by 8 PM ET the day before the due date to be considered timely with the IRS.
- Record the payment in your QuickBooks:
Step 4: Create a W-2c for your employees
Once the full amount of the employee deferred portion of Social Security has been collected and paid, the employee should have a corrected W-2. For additional details see Form W-2 Reporting of Employee Social Security Tax Deferred under Notice 2020-65. Follow this article to learn how to correct W-2s Fix an incorrect W-2.