Taxpayers who took advantage of the payroll tax deferral enacted by the previous administration will now have all year to pay the money back, according to a recent IRS notice.

The optional deferral, enacted in August 2020 via executive order, delayed payroll tax collection from Sept. 1 through Dec. 31 for those making under $104,000 a year, which would then have to be paid back. While the White House had wanted to make the employer liable for paying it back, later IRS guidance said the burden would actually fall on the employee, who would need to pay back the balance by April via larger than normal bites taken from their paycheck. It is this setup that led a coalition of businesses groups, including the Chamber of Commerce, to call the plan "unworkable," as they said it will create such a substantial tax liability at the end that most businesses will just ignore the order altogether.

Businesses, generally, declined to take the White House up on its offer as a result. The federal government, though, did opt into the program, which meant that workers could not opt out of the program and therefore would face larger tax bills in 2021.

The most recent IRS notice, though, means that they, as well as anyone else subjected to the program, will now have until Dec. 31, 2021 to pay back the deferred amount.