What Payroll Taxes Are Deferred?

Due to the CARES Act, all employers can defer for up to two years the deposit and payment of their share of the social security tax on employee wages. Amounts normally due between March 27, 2020 and Dec. 31, 2020, can be deferred with 50 percent required to be paid by Dec. 31, 2021, and the remaining 50 percent by Dec.

What is payroll tax deferment?

To give people a needed temporary financial boost, the Coronavirus, Aid, Relief and Economic Security Act allowed employers to defer payment of the employer's share of Social Security tax. ... If the employer does not repay the deferred portion on time, penalties and interest will apply to any unpaid balance.

What payroll taxes can be deferred under the cares act?

The CARES Act allowed employers the opportunity to defer payment of the employer portion of FICA taxes (6.2%) for any payroll paid between March 27, 2020 and Dec. 31, 2020.