Learn how to set up the Employee Social Security Deferral in QuickBooks payroll products.
With QuickBooks and Intuit payroll, you can offer the option for your employees to participate in the Employee Social Security Deferral as outlined in the Presidential Memorandum issued August 8, 2020.
For more details about the social security deferral, see our Employee Social Security Deferral FAQ.
|Important: Employers may choose to offer the deferral to their employees or not. This is a deferral only, so any amounts not withheld from September 1, 2020 through December 31, 2020 need to be repaid by December 31, 2021. Employers are obligated to remit the total applicable taxes deferred regardless of whether they are able to withhold those amounts from their employees’ paychecks from January 1, 2021 through December 31, 2021. Otherwise, interest, penalties, and additions to tax will start accruing on January 1, 2022.|
Deferral of the employee portion of social security tax is not allowed on paychecks dated on or after January 1, 2021.
If your employee is no longer employed with you, per the IRS guidance, you as the business owner are still liable for the deferred tax. You should make arrangements to recover the amounts from the employee.
Follow steps for your version of payroll.
|Note: Not sure which payroll service you have? Here's how to find which payroll service you have.|