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Van Hollen Leads Push for Answers on Administration’s Implementation of the Payroll Tax Deferral

September 8th, 2020 by WCBC Radio

U.S. Senator Chris Van Hollen (D-Md.) led over 20 of his Senate colleagues in sending a letter to Treasury Secretary Steven Mnuchin and Office of Management and Budget Director Russell Vought urging them to make the payroll tax deferral outlined by President Trump last month optional for federal employees and service members. In their letter the Senators also push for answers on how the Administration plans to implement this deferral.


“We urge you to let federal workers and uniformed service members choose whether to defer their payroll tax obligations under IRS Notice 2020-65, rather than forcing them to participate. Federal workers and service members should not be used as pawns for a payroll tax scheme that many private sector employers are unlikely to join and where key questions remain unanswered,” the Senators begin.


“While some federal employees may want to defer their payroll tax payments, unions representing federal workers have made clear that many others do not,” they continue. “IRS Notice 2020-65 does not answer many key questions, but KPMG concludes that it ‘appears’ to give employers the option to, ‘Permit deferrals only at the employee’s election.’”


They go on to highlight several unanswered questions on the tax deferral, writing, “Federal employees and service members lack basic information about how agencies will implement the payroll tax deferral.” The Senators urge Secretary Mnuchin and Director Vought to clarify these key details before the deferral begins on or around September 18.