How Do I Receive Employer Social Security Tax Deferrals?
The CARES Act allows employers to defer the deposit and payment of the employer’s portion of their Social Security taxes for payments that are due beginning March 27, 2020 through December 21, 2020. The deferred Social Security tax payments are due December 31, 2021 (50% of the deferred amount) and December 31, 2022 (remaining amount). For more details, see the IRS page on this topic.
The Social Security tax deferral is not a payroll tax credit. Instead, it’s a benefit under the CARES Act offered in addition to the Employee Retention Credit and the FFCRA tax credit. See our blog article Coronavirus Payroll Tax Credits for more information.
How to Request Social Security Tax Deferrals in Patriot
If you are a Full Service Payroll customer, you will be able to defer your Social Security taxes from your payrolls. Go to Reports > Payroll Tax Reports > Social Security Deferrals & Employee Retention Credits.
This page is used for both Social Security Payment Deferrals and Employee Retention Credits. You may complete one or both of the sections as your business qualifies.
- Check the box to opt in to the Social Security Deferral Program.
- Click Submit.
When you opt in to the program, Patriot will refund any employer Social Security tax that we have collected, but not yet paid. Then going forward, we won’t collect employer Social Security unless you opt out of the program before the end of the year. We will begin collecting employer Social Security tax on payrolls dated after December 31, 2020.
If you need to opt out of the program and want Patriot to begin collecting the employer share of Social Security taxes, email firstname.lastname@example.org and we can end your participation.