IRS Reminds Employers and Self-Employed Individuals About Deferred Social Security Tax Payment Deadline
IRS Reminds Employers and Self-Employed Individuals About Deferred Social Security Tax Payment Deadline
December 16, 2022
The IRS reminded employers and self-employed individuals who chose to defer paying part of their 2020 Social Security tax liability that their second annual installment of the deferred amount is due on December 31, 2022. Employers could choose to put off paying the employer’s share of their Social Security tax liability. Self-employed individuals could also choose to defer a similar amount of their self-employment tax. The second half of that deferral is due on December 31, 2022. The IRS had sent reminder notices to affected employers and self-employed individuals. However, affected taxpayers are required to make the payment on time, even if they did not receive a notice.
Affected taxpayers can make deferral payments through several modes. However, no matter which payment option is chosen, it must be made separately from other tax payments and deposits. Taxpayers can make the deferral payments through enrollment in the Electronic Federal Tax Payment System Electronic Federal Tax Payment System, a free service available from the Treasury Department. On the Tax Type Selection screen, taxpayers should choose "Deferred Social Security Tax" and then change the date to the applicable tax period. Taxpayers can visit EFTPS.gov, or call 800-555-4477 or 800-733-4829 for details.
Additionally, self-employed individuals can choose Direct Pay to pay directly from a checking or savings account. This service is available for free on the IRS website. Taxpayers should select the "Balance Due" reason for payment and apply the payment to the 2020 tax year where the payment was deferred. Taxpayers paying with a credit card, debit card or digital wallet should select "installment agreement." They should apply the payment to the 2020 tax year where the payment was deferred. Finally, taxpayers should make check or money order payable to United States Treasury, not IRS.