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.
Carlton 'Carl' Doty leads Forrester’s global research in emerging technologies. He helps Forrester clients assess disruptive technologies and evaluate new ventures that drive business innovation. Prior to this role, Carl founded Forrester’s customer insights practice and led a global research organization that helped B2C and B2B marketers select and implement marketing technologies and services.
Earlier in his tenure, Carl managed Forrester's consumer product strategy practice, where he led a research agenda on product innovation that spawned Forrester's book, Digital Disruption. He began his Forrester career in 2006 as an analyst covering digital channels, healthcare technology, and consumer-directed health plans.
Previous Work Experience
Prior to joining Forrester, Carl spent a decade in IT, implementing digital portals and applications for a large regional health insurer to improve customer and partner experiences. He also worked in two early-stage startups, and served as vice president of consulting at a global marketing services provider.
Education
Carl attended Tulane University as an NROTC Midshipman and holds a B.S. in civil engineering management from the University of Vermont.
Rodney Joffe is senior vice president, senior technologist and fellow at Neustar. He has been a sought-after cybersecurity expert who, among other notable accomplishments, leads the Conficker Working Group to protect the world from the Conficker worm. Providing guidance and knowledge to organizations from the United States government to the Internet Corporation of Assigned Names and Numbers (ICANN), Mr. Joffe is a pioneer in the domain name system (DNS) and cybersecurity markets and has demonstrated his expertise in developing new solutions at Neustar such as NeuSentry.
Tony has devoted 15-plus years to leadership and business development positions within the financial services community. His primary areas of expertise include leadership and organizational development, sales and negotiation tactics, strategic planning, merger planning, enterprise risk management, regulatory compliance and project management. Tony has served as the ERM Officer since 2009. Primary responsibilities include ERM program development, integration and administration. Tony oversees the ERM function working closely with senior management and the Board of Directors in interpreting and managing a strong risk culture and facilitating organizational planning and risk mitigation efforts.The Enterprise Risk Management (ERM) function ensures that Bellco actively assesses its risk exposures, evaluates alternative responses to those exposures, reports risks to the Board of Directors and considers risks in the strategic planning process. Bellcos ERM program is focused on strategy integration and the optimization of the risk framework to enhance the achievement of its goals.
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.
