The IRS in News Release IR-2021-256 reminded taxpayers who deferred paying employer FICA for a portion of 2020 or a portion of their 2020 self-employment tax that a deadline is approaching on January 3 to pay a portion of the deferred taxes.[1]

The release explains the option provided to qualified taxpayers in 2020:

As part of the COVID relief provided during 2020, employers and self-employed people could choose to put off paying the employer’s share of their eligible Social Security tax liability, normally 6.2% of wages. Half of that deferral is now due on January 3, 2022, and the other half on January 3, 2023.[2]

The release notes that affected taxpayers should have received a reminder billing notice from the IRS recently:

Most affected employers and self-employed individuals received reminder billing notices from the IRS.[3]

But the IRS warns that claiming the taxpayer did not receive a billing will not excuse the taxpayer from the consequences of not timely paying the amount due:

The agency noted, however, that those affected are still required to make the payment on time, even if they did not receive a bill.[4]

The Notice provides the following instructions on how taxpayers should pay the amounts due:

Employers and individuals can make the deferral payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check. To be sure these payments are credited properly, they must be made separately from other tax payments.

EFTPS has an option to make a deferral payment. On the Tax Type Selection screen, choose Deferred Social Security Tax and then change the date to the applicable tax period (typically, the calendar quarter in 2020 for which tax was deferred). Visit EFTPS.gov, or call 800-555-4477 or 800-733-4829 for details.

Individual taxpayers can also use Direct Pay, available only on IRS.gov. Select the “balance due” reason for payment. If paying with a debit or credit card, select “installment agreement.” Apply the payment to the 2020 tax year where the payment was deferred.[5]

A link in the News Release directs taxpayers to https://www.irs.gov/payments for links to the various payment options that can be used.[6]

[1] “IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due Jan. 3,” IRS News Release IR-2021-256, December 27, 2021, https://www.irs.gov/newsroom/irs-reminder-for-many-employers-and-self-employed-people-deferred-social-security-tax-payment-due-jan-3 (retrieved December 27, 2021)

[2] “IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due Jan. 3,” IRS News Release IR-2021-256, December 27, 2021

[3] “IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due Jan. 3,” IRS News Release IR-2021-256, December 27, 2021

[4] “IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due Jan. 3,” IRS News Release IR-2021-256, December 27, 2021

[5] “IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due Jan. 3,” IRS News Release IR-2021-256, December 27, 2021

[6] “IRS reminder: For many employers and self-employed people, deferred Social Security tax payment due Jan. 3,” IRS News Release IR-2021-256, December 27, 2021