Can I defer social security taxes for Quarter 1 of 2021?
488 views | Last modified 2/28/2022 6:20:35 AM EST

Applicable To
94X 1099 W-2 ACA W-4

No, you cannot defer social security taxes for Q1 of 2021. This is because the IRS did not extend the deferral period, which was ended on December 31, 2020. Thus, employers will no longer be allowed to defer social security taxes. To incorporate this, the IRS has updated Form 941 for 2021. The changes include the following:

  • Line 13b - Reserved for future use
  • Line 13e - Refundable portion of credit for qualified sick and family leave wages for leave taken after March 31, 2021
  • Line 13g - Total deposits and refundable credits. Add lines 13a, 13c, 13d, 13e, and 13f
  • Line 24 - Qualified health plan expenses allocable to qualified sick leave wages reported on line 23

TaxBandits has incorporated the changes, and employers can begin to e-file Form 941 for the first quarter of 2021.

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