The IRS this week released Notice 2021-11, which addresses how employers who elected to defer certain employees’ taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year.
In response to a presidential memorandum signed Aug. 8, 2020, the notice gives employers the option to defer certain employees’ Social Security taxes from Sept. 1 to Dec. 31, 2020. This applies to employees paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately.
The taxes, which are technically called Old Age, Survivors and Disability Insurance (OASDI), account for 6.2% of employees’ wages. Learn more.