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Post Date:  1/25/2021
Last Updated:  1/25/2021

Summary
Cross References
- Notice 2021-11

On August 8, 2020, the President issued a memorandum directing the IRS to use its au- thority under IRC section 7508A to defer the withholding, deposit, and payment of the employee’s share of Social Security tax. The IRS then issued Notice 2020-65 which de- ferred the due date for the withholding and payment of such taxes for the pay period September 1, 2020 through December 31, 2020. Any deferred taxes were to be withheld and paid during the pay period beginning on January 1, 2021, and ending on April 30, 2021. Notice 2020-65 states that associated interest, penalties, and additions to tax for late payment with respect to any unpaid taxes would begin to accrue on May 1, 2021.

The Consolidated Appropriations Act, 2021, extended this repayment period to Decem- ber 31, 2021. As a result, the IRS has issued Notice 2021-11 which modifies Notice 2020- 65. Under Notice 2021-11, employers that deferred the withholding and payment of the employee’s share of Social Security tax for the pay period September 1, 2020 through December 31, 2020 must withhold and pay the deferred taxes during the period January 1, 2021 through December 31, 2021. Interest, penalties, and additions to tax will begin to accrue on January 1, 2022 with respect to any unpaid taxes. If necessary, an employer may make arrangements to otherwise collect the total taxes from an employee.

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