The Internal Revenue Service released information on how employees now have until the end of the year to repay any payroll taxes they deferred from last year.
Former President Trump issued a presidential memorandum last August allowing Social Security taxes to be deferred for the rest of 2020, but under the order they had to be repaid by April 30, 2021. The coronavirus relief package that Congress passed last month extended the repayment period until the end of this year.
Relatively few companies actually implemented the payroll deferral for their employees because there was no guarantee that the deferred payroll taxes would ultimately be forgiven by Congress. However, federal employees and military service members were still required to accept the payroll tax deferral, meaning those taxpayers will be facing smaller paychecks later this year.
Koonce is the Chief Claims Officer, for Sedgwick. In this role, Koonce is responsible for product development and innovation, industry analysis and thought leadership, best practices and compliance standards, legislative and regulatory relationships, and continued involvement in client programs for Sedgwick's lines of business.
Prior to his current role, Koonce was the Managing Director responsible for Sedgwick's casualty retail business unit in which he oversaw program results and service execution across the company's retail customer base. This included use of innovation and technology to improve client outcomes and customer experience.
Prior to joining Sedgwick, Koonce was senior director of risk management for Walmart Stores, Inc., the nation's largest private sector employer. In this role, he managed the retailer's domestic property and casualty claims program. He simultaneously served as president of Claims Management, Inc., Walmart's wholly owned third party administrator.
David Schwartz is the president and CEO of the Financial International Business
Association, or FIBA, where he promotes growth and advancement in international
banking and finance through education, advocacy and networking. With extensive
experience in international banking and compliance, David has held leadership roles at
institutions like Regions Financial Corporation and Banque Sudameris. Fluent in
multiple languages, he holds a Juris Doctorate from New York Law School and a black
belt in Shuri-Ryu Karate. He also serves on various community boards and actively
contributes to educational and health organizations in South Florida.
Matt Gilbert is VP, employer brand strategy at Appcast, the leading recruitment marketing platform powered by programmatic. With nearly 20 years of industry experience in employer brand, EVP and recruitment marketing. Matt is a recognized thought leader, industry speaker, and innovator, having developed and activated over 350 employer brand programs since entering the field. He and his teams have earned numerous industry awards in employer branding and other B2C areas. Matt is a sought-after employer brand expert and has worked with numerous notable organizations in employer brand such as Expedia Group, Disney Cruise Line, PepsiCo, Nike, Tyson Foods, Carmax, Pfizer, Aramco, Lockheed Martin, HCA, Conagra, Gallo Winery, Hanes Brands, American Red Cross, the ASPCA, Condé Nast, Amtrak, JPMorganChase, PayPal and more.
In Notice 2021-11, the IRS on Tuesday explained how employers who deferred payroll taxes on behalf of their employees can withhold and pay the deferred taxes throughout 2021 instead of just within the first four months of the year.
The deferral applied to employees who were paid less than $4,000 every two weeks, or an equivalent amount for other pay periods, with each pay period considered separately. The taxes, which are technically called Old Age, Survivors and Disability Insurance, or OASDI, are calculated at 6.2 percent of employees’ wages.
Notice 2021-11 makes changes to last year’s Notice 2020-65 to reflect the extended payment period. Payments made by Jan. 3, 2022, will be considered to be timely because Dec. 31, 2021, is a legal holiday. However, any penalties, interest and additions to tax will now start to apply on Jan. 1, 2022, for any unpaid balances
The IRS cautioned that employees could see their deferred taxes being collected immediately, so employees should check with their organization’s payroll point of contact on what their collection schedule will be.
