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Taryn32
New Member

Deferred payment

I deferred my payment on my 2020 taxes for social security my IRS account says 0 balance how do I pay the remaining balance I owe 

4 Replies
DoninGA
Level 15

Deferred payment

Any federal income taxes owed can be paid on the IRS payment website using Direct Pay - https://www.irs.gov/payments

Critter-3
Level 15

Deferred payment

Payment of the deferred SE or FICA taxes must be done in a certain way to avoid penalties : 

 

COVID Tax Tip 2021-32, March 10, 2021

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. IRS Notice 2020-65 PDF allowed employers to defer withholding and payment of the employee's Social Security taxes on certain wages paid in calendar year 2020. Employers must pay back these deferred taxes by their applicable dates.

 

The employee deferral applied to people with less than $4,000 in wages every two weeks, or an equivalent amount for other pay periods. It was optional for most employers, but it was mandatory for federal employees and military service members.

 

Repayment of the employee's portion of the deferral started January 1, 2021 and will continue through December 31, 2021. Payments made by January 3, 2022, will be timely because December 31, 2021, is a holiday. The employer should send repayments to the IRS as they collect them. If the employer does not repay the deferred portion on time, penalties and interest will apply to any unpaid balance.

Employees should see their deferred taxes in the withholdings from their pay. They can check with their organization's payroll office for details on the collection schedule.

 

How to repay the deferred taxes

 

Employers can make the deferral payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check. These payments must be separate from other tax payments to ensure they applied to the deferred payroll tax balance. IRS systems won't recognize the payment if it is with other tax payments or sent as a deposit.

 

EFTPS will soon have a new option to select deferral payment. The employer selects deferral payment and then changes the date to the applicable tax period for the payment. Employers can visit EFTPS.gov, or call 800-555-4477 or 800-733-4829 for details.

If the employee no longer works for the organization, the employer is responsible for repayment of the entire deferred amount. The employer must collect the employee's portion using their own recovery methods.

 

https://www.irs.gov/newsroom/what-employers-need-to-know-about-repayment-of-deferred-payroll-taxes

 

Taryn32
New Member

Deferred payment

Even medical and social security taxes?

Mike9241
Level 15

Deferred payment

as of this date there is no clear answer for self-employed indivduals to pay their deferred SE tax. supposedly the IRS will send out notices.

as a pure guess because currently the IRS Direct Pay methods don't provide for designating a payment as being for this purpose either the DP system will be revised so the designation is possible or there will be a form in the 2021 tax return where you designate an estimated tax payment as being for this purpose.

 

  

 

for employer's they file 941's and pay using the methods mentioned

https://www.irs.gov/newsroom/what-employers-need-to-know-about-repayment-of-deferred-payroll-taxes#:... 

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