IRS Notice 2021-11 explains how employers who deferred payroll taxes on behalf of their employees can withhold and pay the deferred taxes throughout 2021 instead of just by, or no later than, April 30, 2021. Payments made by Jan. 3, 2022, will be considered to be timely because Dec. 31, 2021, is a legal holiday. However, any penalties, interest and additions to tax will now start to apply on Jan. 1, 2022, for any unpaid balances. Employees should be aware that once repayment begins, they could see smaller paychecks as the deferred payments are recouped and employees are encouraged to contact their payroll departments concerning what the collection or recoupment schedule might be.