COVID-19 Legislation-Business
Payroll Tax Deferral
Employers and self-employed individuals may defer payment of the employer share of Social Security tax they otherwise are responsible for paying to the federal government with respect to their employees. Employers generally are responsible for paying a 6.2% Social Security tax on employee wages. The deferred tax must be paid over the following two years, with one-half of the deferred amount required to be paid by December 31, 2021, and the other half by December 31, 2022. This deferral is only for the employer portion of Social Security tax. The employee portion of Social Security tax is not deferred. The 1.45% Medicare tax is not deferred for employers or employees.