An important payroll tax deadline is coming up for certain employers. To provide relief from the economic ravages of COVID-19, the CARES Act allowed employers to defer their share of Social Security tax from March 27 through Dec. 31, 2020. Those employers must now pay 50% of the deferred tax by Dec. 31, 2021, and the balance by Dec. 31, 2022. In guidance, the IRS Office of Chief Counsel states that to avoid penalties, deposits must be made of “all amounts deferred by the applicable due dates.” If any portion is unpaid by the due date, the entire deferral will be invalidated, and penalties will be applied based on the original due dates. (Program Manager Technical Advice 2021-07) Call or visit our website for more information! www.mjscpa.com/
