Nov 01 Important Tax Reminder: Repayment of 50% of Deferred Payroll Taxes Due December 31

Employers who took advantage of the CARES Act employer payroll tax deferral in 2020 are reminded that 50% of the deferred taxes must be paid no later than December 31, 2021, with the remaining balance due by December 31, 2022.

Payroll companies are set to automatically withdraw the deferred payroll taxes. Businesses should reach out to their payroll company and ensure the cash is available.  For companies who prepare their own payroll, they must make the deferred tax payment by December 31, 2021.

For any questions or needed guidance here, please feel free to reach out to your Sax advisor.