Tax Due Dates and Deferral Payroll Tax Deadlines

The start of July brings with it fireworks, corn on the cob and yes, the need to start thinking about remaining tax deadlines for 2021. This year, it is also important to start planning for the payroll deferral deadlines that are coming up at year end. For those organizations that chose to defer, there may be significant balances due so it’s important to understand when payments will be required.

2021 Remaining Tax Deadlines

  • September 15, 2021
    • Third quarter estimated tax payments.
    • Calendar year partnership and S corporations tax returns if on extension.
  • October 15, 2021
    • Calendar year C corporation tax return if on extension.
  • November 1, 2021
    • Quarterly Federal Tax Form 941 for the third quarter ending September 30, 2021.
    • Quarterly FUTA tax deposits may also be due if the unpaid FUTA tax has accumulated to more than $500 for the calendar year.
    • State quarterly payroll tax forms.
  • December 31, 2021
    • 50% of deferred taxes due.

Deadlines for Payment of Deferred Payroll Taxes

Due to the COVID-19 pandemic, employers were allowed to defer the deposit and payment of the employer portion of social security taxes (6.2% rate) that would have otherwise been required for wages paid between March 27, 2020 and December 31, 2020.  The deferral also applies to deposits and payments due after January 1, 2021 for wages paid during the quarter ending December 31, 2020.

The IRS is issuing reminder notices for EACH quarter the employer portion of social security taxes were deferred. Employers that deferred amounts in all four quarters of 2020 may receive up to four reminder notices, even though the amounts are all due by the same due dates. The total deferred amount for EACH quarter will be on the reminder notices, however only 50% of the amount must be paid by January 3, 2022. Deferred amounts will be treated as timely deposited and paid according to the following schedule:

  • 50% of the deferred amount is paid by January 3, 2022
  • Remaining amount is paid by December 31, 2022

An employer can begin repaying the deferred amounts at any time.  Any payments or deposits that an employer makes before December 31, 2021, will be first applied against the employer’s payment due on January 3, 2022, and then applied against the employer’s payment due on December 31, 2022.

How To Pay Deferred Payroll Taxes

  • Electronic Fund Transfer Payment System (EFTPS) is the IRS’s preferred method of payment.  If paying through EFTPS, visit HERE and select Form 941, the calendar quarter in 2020 to which the deferred tax relates, and the option for a payment due on an IRS notice.
  • To pay via credit or debit card, visit HERE and follow the prompts.
  • To pay via check or money order, your payment must be accompanied by a completed 2020 Form 941 payment voucher (available HERE) for the quarter in which the deposit and payment was deferred. The circle identifying the quarter for which the payment is being made must be darkened.

If you have any questions about the upcoming deadlines or deferred payroll taxes, please call us at 630-953-4900.  We are happy to discuss further.