December 27, 2021
A payment is due on January 3, 2022 for employers and self-employed individuals who deferred paying part of their 2020 Social Security tax obligation under the COVID relief given in 2020, where they could choose to postpone paying their share of Social Security tax liability, normally 6.2% of wages.
Half of that deferral is due on January 3, 2022, and the other half must be paid by January 3, 2023. (IRS Notice 2021-11).
While most of those affected received reminder billing notices from the IRS, people are still required to make the payment on time if they didn't get a one.
Under a separate part of COVID relief, employers could choose to not withhold Social Security taxes from employees and withhold the tax this year instead, then paying the amount to the IRS. See the IRS page What employers need to know about repayment of deferred payroll taxes for more information.
How to repay the deferred taxes
Employers and individuals can make deferral payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check. The payments must be made separately from other tax payments to ensure they are credited correctly.
EFTPS has an option to make a deferral payment by choosing Deferred Social Security Tax on the Tax Type Selection screen, then changing the date to the applicable tax period, which would typically be the calendar quarter for which the tax was deferred in 2020. People needing more details can visit the EFTPS.gov website or call 800-555-4477 or 800-733-4829.
Individual taxpayers can also use Direct Pay on the IRS website, selecting the "balance due” reason for payment. If paying with a debit or credit card, "installment agreement" should be selected. The payment should be applied to the 2020 tax year where it was deferred.