(from Journal of Accountancy) The IRS has issued guidance (Notice 2021-11) to address how employers who elected to defer certain employees’ payroll taxes can withhold and pay the deferred taxes throughout 2021 instead of just the first four months of the year. Notice 2020-65 gave employers the option to defer certain employees’ Social Security taxes from Sept. 1, 2020, to Dec. 31, 2020. This applied to employees paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately. Under the Consolidated Appropriations Act, the end date of the period during which employers must withhold and pay applicable taxes is postponed from April 30, 2021, to Dec. 31, 2021. As a result, any associated interest, penalties, and additions to tax for late payment of any unpaid applicable taxes will begin to accrue on Jan. 1, 2022, rather than on May 1, 2021.
More from the Journal of Accountancy#RegulatoryUpdates
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