December 22, 2021
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Deferred, now due
If you deferred payroll tax payments in 2020 due to COVID-19 provisions, it’s now time to pay up. ICYMI, there were a couple notable tax deferrals aimed at helping employers through the economic fallout of the pandemic:
- The CARES Act, which was passed in March 2020, included a stipulation allowing employers to defer payment of the employer’s share of Social Security tax.
- In August 2020, President Trump also signed a Presidential Memorandum allowing employers to defer withholding and payment of the employee’s share of Social Security taxes on certain wages paid in the 2020 calendar year.
If you deferred your employer payroll taxes, you’ll need to pay half of the deferred amount by Dec. 31, 2021 and the remaining half by Dec. 31, 2022. Deferred employee payroll taxes are due by Dec. 31, 2021.
Note: Some sources may list Jan. 3, 2022 as a deadline for these initial payments. Because Dec. 31 is a holiday, payments will likely be processed on the next business day — aka, Monday, Jan. 3. However, we encourage you to comply with the Dec. 31 deadline if you’re able.
Find out how to pay these deferred taxes and more on our blog.
SUI tax rates on the rise
COVID-19 caused high rates of unemployment across the country and depleted many state unemployment insurance (SUI) funds. Now, a number of states are raising taxes to replenish these funds — so many employers around the country should expect to pay more in SUI taxes in 2022.
What does this mean for you? Make sure you know what your SUI rate is and that you start paying the correct amount when you run your first payroll in January. Failure to do so may result in fines.
Check out our guide to learn how to calculate your SUI rate. If you’re a Gusto customer, find out how to update your 2022 SUI rate in Gusto here.
Stay on vaccine mandate lifted
There’s been a lot of back and forth on the vaccine mandate first proposed by the Occupational Safety and Health Administration (OSHA) back in November. Here’s the latest: On Dec. 17, the 6th U.S. Circuit Court of Appeals lifted the stay on the federal rule requiring employers with 100 or more employees to mandate vaccination or weekly testing for COVID-19. In other words, the rule is back on (for now, anyway).
The date of enforcement has been shifted to Jan. 10 to give employers time to comply with vaccination verification rules as well as indoor masking requirements for unvaccinated workers. OSHA has also stated that it “will not issue citations for noncompliance with the standard’s testing requirements before Feb. 9, so long as an employer is exercising reasonable, good-faith efforts to come into compliance with the standard.”
Read our full summary of the mandate timeline and stay tuned for any further updates here.
Time’s running out to apply for EIDL
Economic Injury Disaster Loans (EIDLs) have been a lifeline for many businesses during the pandemic, and in Sept. 2021 the popular lending program got better than ever. The Small Business Administration (SBA) expanded eligibility for the program and increased the maximum loan amount from $500,000 to $2 million, among other beneficial updates.
It’s not too late to take advantage of these changes if your business needs funding, but time is running out — the application deadline is December 31, 2021. Visit our blog for more information on the program and how to apply.
January Compliance Calendar
We probably don’t need to tell you that January is one of the busiest months of the year for compliance matters. Several important tax payments and forms are due during the first month of the year—but don’t worry. Here is your January compliance calendar to help you start the year off right!
Find the latest relief options in our Small Business Relief Finder.
Want more news and resources? Check out past editions in our archive.
