Federal Tax Deposit System (LO 9.4)

(COVID provisions) In 2020, Tyck Tock Corp. paid wages of $105,000 to employees, none of which make more than the 2020 FICA cap. The Social Security tax (employer and employee share) is $13,020. No employee elected to defer payroll taxes. What best describes Tyck Tocks payroll tax payments if they elect to defer?

a.$6,510 is due as normal while $6,510 can be paid no later than December 31, 2020.

b.All $13,020 is due by December 31, 2020.

c.$6,510 is due by December 31, 2020 and the remainder is due by December 31, 2021.

d.$6,510 is due as normal while $3,255 is due by December 31, 2021 and the remainder is due by December 31, 2022.

e.All $13,020 is due no later than December 31, 2022.