The Trump administration’s decision to require the deferral of payroll taxes for federal workers and military members is creating more divisions around the president’s attempt to provide short-term economic relief for workers during the coronavirus pandemic.
While many private sector employers are not expected to defer their employees’ Social Security payroll taxes under Trump’s order, the federal government is making it mandatory for its employees. Federal agencies have indicated that the deferral will apply to all eligible civilian employees and service members.
The federal government is the most prominent employer to announce it’s participating in the deferral, and the administration’s move to defer the payroll taxes of executive branch workers increases the impact of an action by Trump that may have little effect beyond government. Continue reading.