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.
Matt is the Chief Operating Officer for Duck Creek Technologies. He brings more than 25 years of the insurance industry and technology experience to this global leadership role that is responsible for successful customer outcomes.
As COO, Matt is responsible for all of Duck Creek’s field operations, which encompasses the global customer experience through a full spectrum of customer account management activities. This experience ranges from customer expectation management, solution architecture & project proposals, implementation projects, SaaS provisioning, go-lives, and production servicing & support.
In previous executive roles, Matt was responsible for all day-to-day company operations, all new business development, and M&A activity that included Accenture’s acquisition of Duck Creek Technologies in 2011 and the joint-venture between Apax Partners and Accenture that resulted in the emergence of Duck Creek Technologies as an independent company in 2016.
Matt has deep roots in technology and is passionate about bringing innovative capabilities to the insurance market. In the formative years of the company’s technology solutions, Matt was chief technology officer for the Accenture P&C software group with responsibility for overall technology, architecture, and software blueprints for all P&C software products and a principal contributor to the original Claim Components software, now Duck Creek Claims.
Jim Bramblet is Accenture’s insurance lead in North America and is based in Chicago, Illinois. His expertise include digital transformation, operating model strategy and strategic cost reduction. Jim holds a BBA from University of Miami.
Stephen Dabney is the leader of Big Four firm KPMG's Audit Committee Institute.
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.
