How do i pay deferred payroll taxes from 2020

[DanPaul02]

If you are the employer, you deduct them from the employee's pay and pay them to the IRS.

If you are the employee, then your employer will deduct them from you pay and pay them to the IRS.

[Critter-3]

The IRS is just now sending out reminder letters about this repayment and the specifics on how/when to pay them.  You can wait for your notice or go online ... they recently published instructions ... 

This link has the information needed for the Self Employed  - https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

How individuals can repay the deferred taxes

Individuals can pay the deferred amount any time on or before the due date. They:

• Can make payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check.
• Should be separate payments from other tax payments to ensure they are applied to the deferred tax balance on the tax year 2020 Form 1040 since IRS systems won't recognize the payment for deferred tax if it is with other tax payments or paid with the current Form 1040.
• Should designate the payment as "deferred Social Security tax."

Individuals making deferred Social Security tax payments in EFTPS should select 1040 US Individual Income Tax Returns and deferred Social Security tax for the type of payment. They must apply the payment to the 2020 tax year where they deferred the payment. Taxpayers can visit EFTPS.gov for details.

How to repay the deferred taxes for employers:

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.

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

How individuals can repay the deferred taxes

Individuals can pay the deferred amount any time on or before the due date. They:

• Can make payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check.
• Should be separate payments from other tax payments to ensure they are applied to the deferred tax balance on the tax year 2020 Form 1040 since IRS systems won't recognize the payment for deferred tax if it is with other tax payments or paid with the current Form 1040.
• Should designate the payment as "deferred Social Security tax."

Individuals making deferred Social Security tax payments in EFTPS should select 1040 US Individual Income Tax Returns and deferred Social Security tax for the type of payment. They must apply the payment to the 2020 tax year where they deferred the payment. Taxpayers can visit EFTPS.gov for details.

IRS self employment tax deferred info

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

And see (starting with question 18)

https://www.irs.gov/newsroom/deferral-of-employment-tax-deposits-and-payments-through-december-31-20...

[mwarney]

Self employed still need guidance from the IRS on exactly how to pay deferred social security using EFTPS.  The EFTPS site has added an option for "deferred social security" but also requires that you enter a tax period consisting of year (2020) AND MONTH.  At first I thought "December" would be appropriate since I am filing form 1040 as a calendar year tax payer.  But entering December returns the error "Invalid Period."  Leaving the month blank also returns an error.  I'm not comfortable "guessing" what to enter here so at this time EFTPS is not an option.

[Wilk101]

Select April 2020 and the payment process continues to the confirmation screen.

[Karmakirl]

Though my deferred 2020 SS tax letter received August 2021 shows the tax period as ‘Dec. 31, 2020’ the EFTPS system only accepts the months of March through November to be used in order to proceed to with the payment and not receive an ‘error’ notice! I am trying to pay the 50% due by Dec 31 2021.

Which month should I use... November??

[Critter-3]

Yes... you can use November if you are paying in November.   Make sure you are choosing the correct option:  

https://www.irs.gov/newsroom/how-self-employed-individuals-and-household-employers-repay-deferred-so...

[mwarney]

I ran into the same issue.  Just for un, I tried the pay by telephone option.  I selected the "deferred social ecurity" option and it went through all the prompts without asking for the month.  Seems like as long as it is applied to the correct year it should be ok.

[dgerrard1]

Where did you see the pay by phone option? What was the number to call?

[mwarney]

It is right on the EFTPS home page near the bottom (in the large box with text).  [phone number removed]  You may need to establish an account if you haven't already done so.

Sorry...  I guess Intuit didn't like me adding a phone number.

[fanfare]

• To pay via the voice response system: 1..800..555..3453

You have to use a format that doesn't match the forum's definition of "Phone Number".

[ndona13]

Hi, 

I am having the same issue- which month did you end up using? I was going to use December 2020, but have been on the phone with the IRS now for 2+ hours and they keep redirecting me.

Thank you for any help/advice!!

[zelinski]

I worked for the 2020 Census and paid deferred payroll taxes in October 2021. I did not work for the Census in 2021.   There doesn't seem to be a way to enter the info into TT 2021 product.  Where do I amend my 2020 TT return for this 2021 payment? 

Help is appreciated.  

[VolvoGirl]

@zelinski  Do you mean the self employment tax deferral or did you pay employees?  You don't enter it on your 2020 or 2021 return.   You just pay it.

Half of the deferred amount is due on December 31, 2021, and the other half is due on December 31, 2022.

Check if you have a Schedule 3 line 12e which goes to 1040 line 31.

IRS Reminder to pay and how to pay

IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due ...

[mwarney]

Your question has me confused...  2020 paroll taxes can be deferred and paid later (half in 2021 and half in 2022).  You have the option of making this deferment when filing your 2020 return.  So if you "paid" deferred payroll tax in 2021 it would presumably be for the 2020 tax year that you had chosen to defer.  If you chose not to defer, I don't know if you can amend your return and make this election now.  Even if you can, I'm not sure how you would benefit since the first payment due  date has already come and gone.