Senate Democrats Introduce Bill to Make Payroll Tax Deferral Optional – By Erich Wagner (Nextgov) / Oct 13 2020
A group of 17 Senate Democrats have introduced legislation that would make President Trump’s controversial proposal allowing employers to defer workers’ payroll taxes between September and December optional for employees, including feds and members of the military.
In August, Trump signed a memorandum giving employers the option to defer Social Security taxes for the remainder of 2020. After most private sector businesses indicated they would not take part in the program, the Trump administration rolled it out across the federal government, making it mandatory for executive branch employees and military service members. Congress, the judiciary branch and the U.S. Postal Service all have elected not to defer their employees’ payroll taxes.
Making the deferral mandatory for federal workers has rankled federal employee groups, who have complained the implementation has been “chaotic and confusing” and fear that it will leave workers on the hook for an effective pay decrease when agencies have to recoup the deferred taxes next year.
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