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Feds over certain salary spared from tax deferral

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.

Reader comments

Thu, Sep 17, 2020

Trump is not going to forgive this tax deferral, that'll need backing from the House and the Senate. He also is not forgiving anything for the military and is strictly contingent on him getting re elected. Trump said so himself.

Wed, Sep 16, 2020

Clearly Trump is looking to forgive this tax deferral. He has even said so. Democrats won’t work with him, so by executive order he is delaying this tax payment. He has already said he is planning to forgive this tax debt for military. This is just another story that is twisted to make Trump look bad. When he is trying to help.

Wed, Sep 16, 2020 Sergio CA

Social Security tax is capped at $137,700. So if you make more than that you don't pay anymore Social Security tax. So this is another way that Trump is trying to Defund Social Security and try to privatize it.

Wed, Sep 16, 2020 John Columbus, OH

Another instance of the wealthy (over $104,000 salary) having their voices heard. Give the average Joe the opportunity to not have a tax hit next year as private employers and upper salaried feds are allowed to do. Typical Trump, helping (not) the little guy!

Wed, Sep 16, 2020 Jon

If anyone really doesn't believe that the pressure (from either party) will cause Congress to simply forgive the deferred OASDI, then you haven't paid attention. Neither side cares about deficits.

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