Deferred Employment Tax Payments Delayed Until January 2, 2023

Employers that deferred payment of certain employment taxes due to a provision in the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act), were scheduled to make their final 50% payment on December 31, 2022. Due to the date falling within New Year’s weekend, the deadline has been moved to January 3, 2023. Organizations making a payment after the 3rd may be assessed penalties.

If payment is not made, the CARES Act deferral is waived and fines of up to 15% of the total deferred amount maybe assessed.

Section 2302 of the CARES Act provides that employers may defer the deposit and payment (of the employer’s portion of Social Security taxes), as well as some other specific railroad retirement taxes.

Deferral details can be found here.

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The information contained in this article is intended for educational purposes and to provide a general understanding of regulatory events, legislative changes and the law – not to provide specific legal advice. Employers are advised to discuss and/or receive counsel from their licensed legal or accounting professional, prior to implementing any new policy or policy change.