Due to COVID19 and the CARES Act, the IRS has allowed employers to defer the payment of the employer share (50%) of social security tax for household employees until next year.
- The income must have been earned between March 27th and December 31, 2020, and
- The tax must be paid back. Half of the deferred taxes are to be paid back by December 31, 2021, and the other 50% of taxes is to be paid back by December 31, 2022.
Note: Only half of the Social Security Tax may be deferred. Income and Medicare Tax are not permitted to be deferred.