The Coronavirus Aid, Relief, and Economic Security (CARES) Act that passed in March 2020 allowed businesses to defer paying their employer share of Social Security (OASDI) taxes through the end of that year. This allowed businesses to hold on to a portion of their tax liability to get through any cash-strapped times caused by COVID-19 and basically, have an interest-free loan for a long period of time. The deferred tax would then become due in two equal installments, with half due on December 31, 2021 and the remainder due on December 31, 2022. Here we are at the start of…
Posts tagged as “OASDI Deferral”
On August 8, 2020, the President issued an Executive Order (EO) to allow an employee to elect to defer their Social Security tax payment, on wages earned from September 1, 2020 through December 31, 2020, to a later date. Rightfully so, the EO lacked details on implementation, which would be up to the U.S. Treasury to determine. Late Friday afternoon on August 28, 2020, the IRS published Notice 2020-65, and while the notice does provide details, it is still lacking rules and guidance on many points. Most employers, since March 27, 2020, have had the ability to defer the deposit…