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.
Dan McAllister was elected San Diego County’s Treasurer-Tax Collector in November 2002 and re-elected to his fourth term in June 2014 by an overwhelming 99% majority of the vote. Not only is he responsible for the collection of more than $5.5 billion in property taxes each year, but his office also manages the Investment Pool which reached an all-time high of $10.1 billion in April of 2016, ensuring that these funds are wisely invested and safeguarded for entities such as the school districts and cities in the County.� Since assuming office, he has worked extensively to improve customer service, enhance communications and outreach initiatives, and has made numerous operational improvements. He is also a strong advocate for diversity.� This is reflected in his staff, which encompasses professionals from all walks of life and backgrounds. His office now delivers service in 16 different languages.Dan also serves as a member of the San Diego County Employees Retirement Association, which manages more than $10 billion of investments. Additionally, he is a former chairman of the Board of Directors of the internationally recognized San Diego Convention Center Corporation.� Prior to his election as San Diego County Treasurer-Tax Collector, Dan was a successful financial consultant and investment broker.Dan contributes considerable time and resources to community service, such as serving as Chair of the San Diego Unified School District’s Special Audit and Finance Committee and is a participating member of the Boards of Directors of the Jackie Robinson YMCA; Habitat for Humanity, San Diego; and New Americans Museum, San Diego. �McAllister’s strong commitment and involvement in the community dates back to his service as a U.S. Peace Corps volunteer in the Western Pacific country of Micronesia.A second-generation San Diegan, Dan holds a Bachelor’s degree (BA) from CaliforniaStateUniversity, Fresno, and a Master’s degree in Business Administration (MBA) from United StatesInternationalUniversity. He has also completed executive education programs in portfolio concepts and management at StanfordUniversity and the University of Pennsylvania’s WhartonSchool.
Mark Gongloff is an editor at Bloomberg News.
Ale Brown is founder and principal consultant at Kirke Management Consulting. She started her career as an IT professional working for large corporations such as Procter & Gamble and Johnson & Johnson. She also ventured into the entrepreneurial world working for boutique consulting firms when she moved to Vancouver. Her specialties at the time were the implementation and management of ERP systems and customer relationship management (CRM) strategies.
During her last corporate job with J&J, she partnered with various commercial groups in the organization, providing IT solutions in the area of sales force effectiveness and digital marketing. This is when she was thoroughly exposed to the world of privacy and data management.
Brown founded Kirke Management Consulting in 2014, with the goal to help organizations excel in their business objectives by finding opportunities for growth, while at the same time managing risks that could prevent their success. For more information, visit www.kirke-consulting.com or contact contact@kirke-consulting.com.
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.
