Federal executive-branch employees and military personnel under the Trump administration will be taking advantage of the deferral. Therefore, federal employees’ paychecks are expected to shrink by the start of 2021 to pay what was deferred in 2020.
Payroll-tax defferal is “not in the best interest” of employees
Michael DeAngelis, a spokesman for CVS Health said, “We have reviewed the guidance issued by the U.S. Treasury Department and the IRS and have determined that participating in this optional deferral program is not in our employees’ best interest.”
While any company can participate in the Trump plan, the list of companies actually taking advantage of the program is rather scant. Furthermore, there is no guarantee that Trump’s program will hold water with Congress, which ultimately has to approve the deferment.
In fact, the U.S. House of Representatives will not implement the payroll-tax deferral program.
The House Chief Administrative Officer Philip Kiko sent an e-mail to the lower chamber’s employees indicating that his office and the Committee on House Administration “reviewed the guidance” related to the implementation of the payroll-tax deferral program. They also “considered the unique structure of the House and has determined that implementing the deferral would not be in the best interests of the House or our employees.”
