The Form 941 instructions and CP256V notice explanation indicate the deferred tax amount can be paid separately using the Electronic Federal Tax Payment System (EFTPS), credit or debit card, or check or money order. Due to weekends and holidays, the actual due dates are January 3, 2022, and January 3, 2023, for the two deferred installment due dates. For example, if an employer was required to remit payroll taxes quarterly and chose to defer taxes for each calendar quarter in 2020, then the employer would need to submit four separate payments by December 31, 2021, for each quarter of 2020. The IRS has indicated on its explanation webpage for the CP256V notice that employers must make a separate payment of the deferred tax and should not include the deferred tax as an additional amount with a current-period payroll tax deposit.Ī separate payment should be made for each deferral period. How to Determine & Pay the Amount of Deferred Tax for the Employer’s Share Employers must remit 50 percent of the deferred tax by December 31, 2021, and the remaining amount by December 31, 2022. Section 2302 of the Coronavirus Aid, Relief, and Economic Security Act included a provision allowing employers to defer the deposit and payment of the employer’s share of Social Security tax and certain railroad retirement taxes (“employer’s share of Social Security tax”) due between March 27, 2020, and December 31, 2020. It is important that employers timely remit the required payments to avoid significant penalties. Employers who chose to defer payment of certain employment taxes until December 31, 2021, and December 31, 2022, should be receiving a CP256V reminder notice from the IRS with information pertaining to remittance of the first installment due December 31, 2021.
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