Non-negotiable: all military ((and Fed)) members will be subject to Trump's payroll tax deferral

[nitpicker]

https://federalnewsnetwork.com/pay/2020/09/military-is-subject-to-trumps-upcoming-payroll-tax-deferral-too/

Non-negotiable: all military members will be subject to Trump’s payroll tax deferral

By Nicole Ogrysko | @nogryskoWFED
September 4, 2020 5:57 pm 4 min read

All active-duty military members as well as federal civilian employees will be subject to the president’s upcoming payroll tax deferral, a senior administration official told Federal News Network Friday evening.
(snip)

The Coast Guard was the first military service to publicly inform its members that they’d be subject to the changes. In a message to the workforce Friday morning, the service said it will defer a 6.2% tax on employee wages and basic pay for military members from September through December, and that the deferrals are “non-negotiable.”

The payroll tax deferral applies to all Coast Guard military members who make $8,666 a month or less, the notice said.

As Federal News Network previously reported, civilian employees whose gross, biweekly wages are $4,000 or less are also subject to the payroll tax deferral.

Private sector employers have the option of implementing the payroll tax deferral, which stems from an Aug. 8 presidential memorandum, for their employees. As the nation’s largest employer, the federal government is planning to implement it later this month, though many questions remain about the plan and its potential impact on the workforce.
(snip)

The Coast Guard notice, for example, reiterates the payroll tax deferral affords employees no opportunity to opt out.

The changes in payroll tax deductions are temporary, and federal employees will have to pay back deferred taxes starting in January. They’ll have until April to do so before penalties and interest may accrue, the IRS has said.

The Coast Guard suggested employees and military members will pay the deferred taxes back over the course of several months, as opposed to a lump sum.

“The deferred payments will be subtracted from paychecks in January, February, March and April 2021 in addition to regular withholding,” the notice reads.
(snip)

[CrispyQ]

1. The cult will praise the Con & vote for him because they have 6% more now,

and next year when they have to pay it back, they'll blame Biden.

[Ohiogal]

2. Exactly why he's doing it.

[dalton99a]

3. Bingo.

[SheltieLover]

4. There is a payroll withholding form to request additional $ witheld

I'd do it.

[nitpicker]

5. I can't find a way for employees to choose to keep withholding Social Security

Private employers do have the option to delay withholding for the rest of the year.

[SheltieLover]

6. The form I referenced

Is not exclusive to this insanity.

It is a form that the employee can choose to have additional monies witheld.

[SheltieLover]

7. Could be W4?

Cannot recall form.

One thing people could do, though, is to eliminate exemptions, so that more is held out.

Maybe talk to HR?

What a cluster.

I hope this helps!

[PoindexterOglethorpe]

8. If the withholding is no longer withheld,

then changing exemptions won't matter.

[SheltieLover]

10. But Fed taxes are still being witheld, right?

Just not SS.

[PoindexterOglethorpe]

15. Correct.

A lot of workers will only notice that their paycheck has gotten a little larger, and will not understand that the extra money will need to be paid back. Or it, god forbid, it's made permanent, Social Security will be completely and totally out of money in a very short time.

Most people don't understand that SS is a pay as you go system. What you contribute to it is not held in an account with your name on it, but rather goes to those currently collecting. The very best way to make it solvent forever is to raise the limit and income subject to FICA.

Plus, all the tax cuts for the rich need to be rolled back.

[SheltieLover]

16. Yes, absolutely!

Remove income cap AND reinstate pre-St. Reagan wealth tax!

[sl8]

9. Are you referring to the W4?

That would affect income tax withheld, not payroll taxes.

[SheltieLover]

11. Likely what I'm thinking of

Perhaps they have changed it. There used to be a line to designate an extra amount to be witheld each pay period.

[sl8]

12. Yes, I've used that line to tweak my withholding.

I haven't kept up with any changes, but it doesn't change my point - it doesn't affect the payroll taxes withheld, just the income tax. FICA is a fixed rate.

[SheltieLover]

14. Sorry

I guess I misread.

[tblue37]

18. I think the point is to maybe get a refund or a larger refund next year so you'd have money

to pay back the deferred taxes when the bill comes due.

[sl8]

19. I suppose so.

Doesn't seem worth it, for 3 months. Also, they'll start deducting double in January, so you'd better hope you get a tax refund and get it quickly, if you're counting on that to get by.

Could just put the 3 months "extra" away until January, in a bank or cookie jar.

[struggle4progress]

13. "employees will have to pay back deferred taxes starting in January"

[Dagstead Bumwood]

17. Thankfully my company decided not to participate

in this bullshit. Too much confusion for the rank and file to deal with, they felt. I couldn't agree more.