Notice 2020-65 permits an employer to defer the withholding and payment of the employee share of social security tax on certain wages and compensation paid to an employee from September 1, 2020, through December 31, 2020. Under the Notice, the amounts deferred generally were to be withheld and paid ratably between January 1, 2021 and April 30, 2021. Section 274 of the COVID-related Tax Relief Act of 2020 extends the due date provided under Notice 2020-65 for employers to withhold and pay the employee share of social security tax until the period beginning on January 1, 2021, and ending on December 31, 2021. (Since December 31, 2021 is a legal holiday, payments made by January 3, 2022 will be considered timely.) Associated interest, penalties, and additions to tax for late payment will begin to accrue on January 1, 2022, with respect to any unpaid amounts of the deferred tax. Notice 2021-11 PDF, released on irs.gov on January 19, 2021, modifies Notice 2020-65 to reflect this extended due date.
