The CARES Act provides for the delay of payment of Employer Social Security tax incurred between March 27, 2020 and December 31, 2020. Read the Act’s full text.
50% of the deferred tax payments are due on December 31, 2021 and 50% is due on December 31, 2022.
Please note, employers may defer Social Security taxes even if they receive a Paycheck Protection Program (PPP) loan from the SBA. If and when the PPP loan is forgiven, employer Social Security taxes may no longer be deferred and are due on their usual payment schedules. Taxes that were deferred until the time that the loan is forgiven remain payable on the deferral dates of December 31, 2021 and 2022 without penalty.
If you elect to defer payment of your employer social security tax per the condition of the CARES Act, contact us now to get started.