Memo outlines plan to defer payroll taxes for federal employees [View all]

[brooklynite]

Source: Politico

At least part of the federal government is preparing to implement President Trump’s plan to defer payroll taxes even before his administration finishes spelling out the details of how it will work.

The National Finance Center, which handles payroll for thousands of federal workers, said it will begin deferring Social Security taxes for “all” employees who are eligible for the initiative — apparently not giving them the option of whether to participate.

In a memo posted on its website, NFC is also telling workers that the deferred taxes will eventually be forgiven, though that is hardly certain — only Congress can do that.

“This is a deferral of the deductions, and Treasury should look to have legislation put in place so that employees do not have to pay back these deferred amounts,” reads the memo, which was first reported by the tax journal Tax Notes.

Read more: https://www.politico.com/news/2020/08/28/payroll-tax-federal-employees-deferral-404546