DEFERRED SOCIAL SECURITY TAX PAYMENT DUE DECEMBER 31 FOR PARTICIPATING EMPLOYERS, SELF-EMPLOYED PEOPLE:

Employers and self-employed individuals that chose to defer paying part of their 2020 Social Security tax liability are receiving reminder notices that their second annual installment of the deferred amount is due on December 31, 2022.

As part of the COVID relief provided during 2020, employers could choose to defer paying the employer's share of their Social Security tax liability, which is 6.2% of wages. Self-employed individuals could also choose to defer a similar amount of their self-employment tax. Generally, half of that deferral was due on December 31, 2021. The other half is due on December 31, 2022.

In October, the IRS sent reminder notices to affected employers and self-employed individuals. The agency noted, however, that those affected are still required to make the payment on time, even if they did not receive a notice.

How to repay the deferred taxes

Employers and individuals have several options for making this payment. Deferral payments can made through the Electronic Federal Tax Payment System (EFTPS), Direct Pay, by debit card, credit card or digital wallet, or with a check or money order. No matter which payment option is chosen, it must be made separately from other tax payments and deposits. This will ensure that it is credited properly and will help avoid follow-up bills or notices.