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.
Pierre du Rostu has been CEO of the AXA Digital Commercial Platform since June 2022. In this role, he leads a team dedicated to delivering innovative global solutions to AXA's B2B customers. AXA Digital Commercial Platform's ambition is to support businesses beyond traditional insurance contracts, using technology to help them better manage a very complex risk environment.
Pierre started his career in consulting in 2011 before joining the AXA Group in 2015, where he first held several senior positions in Commercial P&C. He then joined AXA XL as Head of Integration before taking on the role of Chief Operating Officer - International P&C and then Global Head of Innovation & Business Architecture at AXA XL.
Joep Leussink is the head of growth at AddEvent, a San Francisco-based software company creating calendar, appointment and event management solutions that empower over 250,000 companies globally to enhance their event and appointment management and engagement. As a partner to accounting firms and small-practice CPAs across the U.S., he and AddEvent advise clients on issues related to client engagement, deadline management and documentation workflows on a regular basis.
Pam identifies client goals and objectives, understands service requirements, and engages the appropriate people and resources to create an exceptional standard of client satisfaction. She works closely with internal functional teams to maximize communications of client needs and ensures all deliverables are attained as promised.
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.
