Feds over certain salary spared from tax deferral
- By FederalSoup Staff
- Sep 15, 2020
Roughly 60 percent of the more than 2 million federal employees will be impacted by the tax deferral plan established by the president that would result in reduced paychecks at the beginning of the year, Federal Times reports.
The program, which goes into effect this month, allows employees with less than a $104,000 annual salary to keep their Social Security taxes in their paycheck for the rest of 2020; however, that money must be repaid between Jan. 1 and April 30, 2021, according to the article..
The report notes that the private sector can opt out of the program but federal employees are required to participate.