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January 19, 2021

IRS extends payback period for employers that elected to defer employee withholding between September 1 and December 31, 2020

In Notice 2021-11, the IRS has extended to December 31, 2021, the time that an employers has to withhold and remit Social Security taxes if the employer elected, under Notice 2020-65, to defer withholding of certain employees' Social Security taxes between September 1, 2020 and December 31, 2020. Notice 2020-65 had required employers to withhold the deferred Social Security taxes from employees' wages between January 1, 2021 and April 30, 2021, but Notice 2021-11 now extends the payback period through the end of 2021. A Tax Alert is forthcoming.