If you have employees, you must withhold their 6.2 percent share of the Social Security (OASDI) tax from their wages up to an annual wage ceiling ($137,700 for 2020).
You pay the money to the IRS along with your matching 6.2 percent employer share of the tax. The combined 12.4 percent Social Security tax is one of the biggest tax burdens faced by businesses and their employees.
Relief for Employer Portion
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, a COVID-19 relief measure passed by Congress, allows employers to defer paying the employer 6.2 percent share of the Social Security tax from March 27, 2020, through December 31, 2020.
Fifty percent of the deferred tax must then be paid by December 31, 2021, and the remaining 50 percent by December 31, 2022. This deferral is also available to self-employed taxpayers.
The CARES Act ... Log in to view full article.