Social Security Deadline: Deferred Tax Payments Due Jan. 3

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Employers and self-employed individuals who chose to defer paying part of their 2020 Social Security tax obligation must make a payment by Jan. 3, 2022. While many received reminder billing notices from the IRS, the agency also noted that those affected are still required to make a tax payment, even if they never received a bill.

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“As part of the COVID relief provided during 2020, employers and self-employed people could choose to put off paying the employer’s share of their eligible Social Security tax liability, normally 6.2% of wages,” according to the IRS reminder. “Half of that deferral is now due on January 3, 2022, and the other half on January 3, 2023.”

The agency added that under separate COVID relief, employers could choose to waive withholding Social Security taxes from eligible employees in 2020, and instead withhold tax this year and then pay those amounts to the IRS.

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To repay deferred taxes, employers and individuals can make a payment through the Electronic Federal Tax Payment System (EFTPS) or by credit, debit card, money order or check. To be credited properly, the IRS advises that deferred tax payments be made separately from other tax payments.

To pay through EFTPS, there’s an option to make a deferral payment. On the Tax Type Selection, choose Deferred Social Security Tax. Change the date to the applicable tax period, which is the calendar quarter in 2020 for which tax was deferred.

See: Avoid Hefty Social Security Payment at Tax Time by Paying Ahead – Here’s How
Find: What is the FICA Tax and How Does it Connect to Social Security?

Individual taxpayers can also use the IRS service Direct Pay. Select “balance due” as the reason for payment. If paying with a debit or credit card, select “installment agreement” and apply the payment to the 2020 tax year where the payment was deferred. Direct Pay is only available Monday to Saturday midnight to 11:45 p.m. ET and Sunday 7 a.m. to 11:45 p.m. ET.

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About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.
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