Reminder to Pay Deferred 2020 Payroll Taxes

If your business opted to defer the employer portion of Social Security taxes for the applicable period in 2020, 50% was due at the end of 2021 (although the date was extended to January 3, 2022, because of the weekend and a D.C. holiday). The other 50% is due by the end of 2022, but again, the deadline is actually January 3, 2023. Miss this date and you’re subject to a penalty of 10% of the underpayment if the failure is for more than 15 days and 15% if the tax is not paid within 10 days of the first notice sent to the taxpayer demanding payment. #IdeaoftheDay