Scroll Top


What is the deferral?

  • The deferral is on the employee share (6.2%) of Social Security Payroll tax
  • The deferral period is from September 1,2020- Dec 31,2020
  • This is only a deferral; the guidance does not indicate taxes will be forgiven

What determines if an employee is eligible for the deferral?

  • Taxes may only be deferred for employees whose applicable wages are less than $4,000 on a bi-weekly pay period
  • The deferral eligibility is based on a pay period by pay period basis
What’s the role of the Employer?
  • Employers are not required to offer the payroll tax deferral to employees.
  • Employers are responsible for collecting and paying back any deferred taxes. Payments would be due between September 1, 2021 and April 30, 2021.
  • Penalties and interest on unpaid amounts begin accruing May 1, 2021.
  • It will remain the employer’s responsibility even if they are unable to collect the deferred amount from their employee(s).
Privacy Preferences
When you visit our website, it may store information through your browser from specific services, usually in form of cookies. Here you can change your privacy preferences. Please note that blocking some types of cookies may impact your experience on our website and the services we offer.