Legislation Introduced to Make Payroll Tax Deferral Program Optional
Senator Chris Van Hollen (D-MD) and over a dozen Senate Democrats introduced legislation, the Protecting Employees from Surprise Taxes Act, which would make the Trump administration’s tax deferral program optional for federal employees and service members. The legislation states that employees who wish to partake in the program must provide written consent to their employers.
Payroll Tax Deferral Program Leaves Federal Employees Seeking Answers
The White House recently announced an executive order that authorizes employers to defer the Social Security payroll tax from September 1, 2020 through the end of the year for employees who make less than $3,999 per biweekly pay period, known as a payroll tax deferral. This new order has left many agencies and employees with various questions like whether employees can opt-in or out of the program and what happens to federal employees who leave their agencies before or during the window of repayment.