From: For OS announcements to all of HHS <HHS-NEWS-ALL@LIST.NIH.GOV> On Behalf Of HHS News (HHS/ASPA)
Sent: Friday, September 11, 2020 5:37 AM
To: HHS-NEWS-ALL@LIST.NIH.GOV
Subject: Payroll Tax Deferral Information
Dear Colleagues,
As you may be aware, the President has issued a Presidential Memorandum authorizing the deferral of some types of payroll taxes for certain individuals in order to alleviate financial hardships and provide temporary relief during these challenging times. The HHS Office of Human Resources is working closely with our payroll provider, Defense Finance Accounting Service (DFAS), to implement this deferral, which is scheduled start this month.
If your gross pay in any covered pay period is less than $4,000, the majority of your federal payroll taxes between mid-September 2020 and December 31, 2020, will be deferred to 2021. The Medicare portion of your payroll taxes will not be deferred. Your eligibility for the deferral will be automatically calculated by our payroll provider on a pay period-by-pay period basis. If you are eligible for the deferral, you will automatically see a change in your paycheck for the check corresponding to pay period. Generally speaking, employees with an annual gross salary of over $104,000 will not be eligible for the deferral.
Please bear in mind that this is a temporary deferral to provide relief during the COVID-19 pandemic; the period to pay back the deferred taxes will occur between January 1, 2021 – April 30, 2021. We are working with other agencies to develop repayment procedures, but do not have that information at this time. We recognize that special circumstances may arise (retirement, termination, agency transfer, etc.), and we are working on policies and procedures for how to handle these scenarios as well. As we receive more information, and prior to any future adjustments or repayments, we will communicate additional details to help you plan your finances.
DFAS prepared Frequently Asked Questions on the Payroll Deferral that can be found at: https://www.dfas.mil/taxes/Social-Security-Deferral/Civilian-Employee-FAQs/. If you have any additional questions, please contact your HHS Payroll Liaison.
-HHS Office of Human Resources
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