As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, passed in 2020), all employers have been able to defer the deposit and payment of the employer’s share of Social Security taxes since March 27, 2020.
*IRS Notice 2020-65 allowed employers to defer withholding and payment of the employee’s Social Security taxes.
If you chose to defer your employer Social Security taxes in 2020 through the CARES Act, you must repay at least 50% of the deferred amount due by December 31, 2021. The remaining 50% must be repaid by December 31, 2022.
To help offset the deferral, these payments can be made in incremental values throughout the year. However, if you do not repay the deferred amount by January 1, 2022, your unpaid balance will begin accruing interest, penalties, and other additions.
Resourcing Edge wants to help make this process as easy as possible for you. Our team has created a code to offset your deferral amount. We can also track your outstanding deferral balance in real-time. Simply work with your Client Account Manager on the payment(s) schedule, and we will make the applicable IRS deposits for you.
Our HR professionals continue to be here to support you through COVID-19 and the relief Acts created. Should you have any questions about the CARES Act or others, or if you simply want more information, contact your Resourcing Edge Client Account Manager.