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NARFE Issues Statement on Payroll Tax Deferral for Federal Employees
September 1, 2020

 Alexandria, Va. – In response to the Administration’s plan to implement its deferred payroll tax policy for federal employees, NARFE National President Ken Thomas issued the following statement:

“I hope federal employees see this for what it is: a short-term loan that will need to be repaid in full, and not an increase in take-home pay. Unfortunately, I worry that millions of federal workers will be caught off guard by the size of their tax bill next year. I urge them to save the extra income they receive through their paychecks for next year's taxes.

“While the Presidential Memorandum directs the Secretary of the Treasury to explore avenues, including legislation to eliminate the obligation to pay the deferred taxes, federal employees should not expect that to occur. Congress has not supported the deferral policy, and there has been no indication that it will accede to the Administration's request to approve legislation to eliminate the taxes. Furthermore, there is no clear, legal avenue for the Secretary of the Treasury to do so unilaterally.”



Jenn Rafael
Director, Communications and Marketing


National Active and Retired Federal Employees Association
NARFE (National Active and Retired Federal Employees Association)
606 N. Washington St., Alexandria, VA 22314, Phone: (703) 838-7760, Fax: (703) 838-7785.

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