Under the Treasury Notice, employers remain liable for employment taxes, whether they withheld such taxes or not. If Congress does not enact corresponding legislation to forgive the amounts deferred, the Treasury Notice requires employers to withhold the amounts deferred ratably from wages and compensation paid between January 1 and April 30, 2021.
The Treasury Notice allows an employer, if necessary, to “make arrangements to otherwise collect” the total deferred taxes from the employee. The Treasury Notice does not provide any further guidance on how an employer may otherwise collect the deferred taxes.
If an employer fails to withhold and pay the total deferred taxes by April 30, 2021, interest, penalties and additions to tax will begin to accrue on May 1, 2021, with respect to any unpaid deferred taxes.