If an employer used the services of a third party payer to report the deferred deposit and payment of any portion of its share of Social Security taxes during the payroll tax deferral period, the employer is solely liable for payment of the deferred taxes.How to make payments for deferred tax reported by third party payer aggregate filers:Įmployers should coordinate with their third party payer to pay deferred taxes owed by the Decemand Decemdue dates. They must list all clients who are deferring deposits of the employer's share of Social Security tax on the Schedule R. Third party payers that reported their clients' deferred deposit and payment of the employer's share of Social Security taxes must have attached a Schedule R to their aggregate returns in 2020. This includes a non-certified professional employer organization and a third party payer designated as an agent by an employer submitting Form 2678. There are special considerations in repaying the deferred taxes when an employer uses a third party payer that files aggregate Forms 941 and 943 under its own EIN. If any portion of the employer's share of Social Security tax is not deposited or paid by the applicable date, penalties and interest will apply.Employers must pay 50% of the amount eligible to be deferred by Decemand the remaining deferred tax by December 31, 2022.The deferral applies to those taxes for the period Mathrough December 31, 2020.Here are some important dates for people to know: The Coronavirus, Aid, Relief and Economic Security Act – CARES Act – allowed employers to defer the deposit and payment of the employer's share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes.
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