 internal revenue service IRS tax news IRS reminder from many employers and self-employed people deferred social security tax payments due December 31st You know I have a plan with this whole social security payment thing I mean like why can't we just defer the social security tax payments until like Retirement age the point at which the government is supposed to graciously return our money But instead of us paying like the social security tax at that point And then the government giving us the money back in the form of social security benefits We just call it a wash at that time You know and then and then that way we don't have to take the money out of the economy And you could still you could still bloat the federal government by hiring a bunch of bureaucrats to track like the increases in the social security IOU accounts and then Netting them out against the decreases when people reach the retirement age for the social security benefit payments So so like for those politicians that are connected But not quite so much so that they can kind of get their kid a job running like a foreign energy company They could have still at least get them a job increasing and decreasing the social security accounts And and there wouldn't really be any money involved. So you you lessen the danger of them like stealing the money and then Spending it on like filming strange sexual rituals while wearing women's clothes Which were acquired from suitcases. They stole from like Airport luggage areas or something, you know, I feel like that would be give a way. That's just an idea first a joke I'm sick of hearing that every cloud has a silver lining It's not true. Dang it. Like honestly, it makes me feel like I'm talking to some kind of perpetual liar or something Like dr. Fauci. I mean think about it Like if a cloud was encased in silver, it fell out of the sky due to being heavy I mean if if every cloud had a silver lining We wouldn't be wandering around in dank dark minds to search for the stuff Instead, we just take a nice hot air balloon up so we could line some Silver cloud linings while drinking champagne and admiring the sunset Noting while we're enjoying the scenery where that rainbow touches down So we could just go pick up a nice pot of gold when we land our, you know, airship balloon ship Clouds have a silver lining Yeah, and zero COVID policy is a good idea Tell us another one. Why don't you? IR 2022-220 December 14th, 2022 Washington The internal revenue service today reminded employers and self-employed individuals that chose to defer paying part of their 2020 social security tax liability that their second annual installment of the deferred amount is due on December 31st 2022 as part of the COVID relief provided during 2020 employers could choose to put off paying the employer share of social security tax liability Which is 6.2 percent of wages. So clearly many businesses I couldn't do their normal businesses at the time of COVID. They were basically shut down to some degree But the government still wanted the people to not decrease the employment of Individuals so one of the ways to incentivize that was to reduce the payroll taxes But instead of just reducing them outright, they had the deferral related to them And so now the Piper's piping home saying pay the Piper wants to be paid at this point in time is what I'm trying To say so this can be a kind of a confusing process because the payroll is a bit confusing in any case If you talk about the social security that's gonna have an employer and an employee portion to it and they said that the employer portion could be You know deferred and so that's the kind of that's the part of it that we're basically Getting into at this point in time. So self-employed individuals could also choose to defer a similar amount of their self-employment tax So what kind of happens with the self-employed individuals? It's kind of interesting because every time they try to tweak something for the payroll for the Corporations then they kind of have to do a similar thing for the self-employment Individuals because they're treating the self-employed individuals at least for payroll taxes as if the the sole proprietor is an Employee of their own business meaning they're paying both the social security and Medicare for the employer and employee Taxes on the net income so every time they do something on one side the corporate side for employee taxes They kind of have to mirror it or they should to kind of be fair on The self-employed side so now you've got that situation With it as well so generally and that would be the self-employment tax right so generally half of the deferral was due on December 31st 2021 the other half is due on December 31st 2022 earlier this year the IRS sent reminder notices to affected employers and self-employed individuals the agency noted However that those affected are still required to make the payment on time Even if they did not receive a notice so the piper is getting Insistent about paying the piper so how to repay the deferred taxes Employers and individuals have several options for making this payment deferral payments can Can made through electronic federal tax payment system. That's the E F T P S direct pay there's a link to that here by direct card credit card or digital wallet or With a check or money order no matter which payment option is chosen It must be made separate separately from other tax payments and deposits So you don't want to be mixing up you got to tell the IRS Why are you making the payment? Otherwise you confuse the IRS and they'll apply it to the wrong thing They might refund it back to you and then charge your interest because you didn't pay them when you did pay him But then they gave it back to you because they applied it to the wrong thing. So you got to be you got to be specific So this will ensure that it is credited properly and will help avoid follow-up bills or notices So we've got the E F T P S employers and individuals can make the deferral payment through the enrollment in the electronic federal tax Payment system. There's a link to that here. It's a free service available from the Treasury Department So that they have this free service that allows you to pay them. They're gracious enough to not charge you for paying them That's nice. So on the tax type selection screen choose deferred social security tax and then change the date to the applicable tax period the calendar quarter 2020 for which tax was deferred So make sure you have the proper Period that you're applying the tax to or else once again The iris will get confused and they'll apply it to the wrong place They may refund it and then say that you didn't pay them when you did pay them But they applied it to the wrong place and then charge your penalties and interest. So be careful Visit the E F T P S dot gov or call 805 5 5 4 4 7 7 or 807 3 3 4 8 2 9 I won't say those a hundred times because there'll be a link to this in the description if you want to check it out yourself You got the direct pay Alternatively self-employed individual taxpayers can choose direct pay to pay directly from a checking or savings account This service is available free only on direct pay with bank account. There's a link to that here once again They graciously provide this free option to pay them. So when you give them money They're not going to smack you across the face With a penalty at the same time, which is nice So select the quote balance do in quote reason for payment and apply the payment to the 2020 tax year where the payment was deferred direct pay is not available to pay employment taxes However, then you've got the debit card credit card or digital wallet if paying with a credit card debit card or digital wallet select quote installment agreement and quote apply the payment to the 2020 tax year where the payment was deferred note that the iris does not charge a fee for this service But the authorized third-party payment processor do so in other words if you pay with a credit card You still might get a fee, but the iris is saying hey look it's not us That's doing it. It's your credit card So you might want to pay one of those other ways if you want to avoid the little fee on it So then you can visit irs.gov forward slash payment for details. There's a link to that here checker money order So make any checker money order payable to the United States Treasury not the irs The United States Treasury poor favore if you please for more information on where to mail payments You could see the instructions for form 941. There's a link to that here There's links to all the other payment options and stuff that I said there was a link to there's phone numbers that you can call All that stuff's here, and there'll be a link to this and the description