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OMB Fails to Offer New Info in Payroll Tax Deferral Memo
Government Executive: After weeks of information trickling out from individual payroll processors about the Trump administration’s plan to defer the payroll taxes of federal employees and members of the military between now and the end of 2020, the Office of Management and Budget issued a memo on the subject last week, shedding little light on the effort.
Beginning with paychecks many federal employees and service members receive this week, agencies will not deduct the typical 6.2% employee portion of the Old Age Survivors Disability Insurance tax. Feds will continue to see larger than normal take home pay until the end of the year, although federal payroll processors have indicated they will begin to recoup that money in 2021 in the form of greater payroll tax deductions.
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