Senators Collins, Van Hollen Lead Bipartisan Push to Make Payroll Tax Deferral Optional for Federal Employees and Service Members

Washington, D.C. – U.S. Senators Susan Collins (R-ME) and Chris Van Hollen (D-MD) led a letter that was signed by 21 of their colleagues—including Senator Angus King (I-ME)—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 pushed 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,” the Senators wrote.  “While some federal employees may want to defer their payroll tax payments, unions representing federal workers have made clear that many others do not.  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.’”

The Senators highlighted several unanswered questions on the tax deferral, urging Secretary Mnuchin and Director Vought to clarify these key details before the deferral begins on or around September 18.

In addition to Senators Collins, Van Hollen, and King, the letter was signed by Senators Chuck Schumer (D-NY), Tim Kaine (D-VA), Sherrod Brown (D-OH), Tammy Baldwin (D-WI), Elizabeth Warren (D-MA), Jeff Merkley (D-OR), Ben Cardin (D-MD), Dick Durbin (D-IL), Sheldon Whitehouse (D-RI), Richard Blumenthal (D-CT), Bernie Sanders (I-VT), Ron Wyden (D-OR), Tom Carper (D-DE), Patty Murray (D-WA), Mazie Hirono (D-HI), Tammy Duckworth (D-IL), Jack Reed (D-RI), Mark Warner (D-VA), Kyrsten Sinema (D-AZ), and Amy Klobuchar (D-MN).

Click HERE to read the full letter.

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