NSCS mulls Trump’s tax deferral plan

Nebraska State College System officials said Tuesday they have not yet decided whether to implement President Trump’s payroll tax deferral plan, which takes effect this month and would show up in paychecks issued Oct. 1.

The plan is intended to provide relief to workers earning bi-weekly pay of $4,000 or less during the COVID-19 pandemic, according to guidelines issued Saturday by the Department of the Treasury. 

Issued Aug. 8 as a presidential memorandum, Trump’s plan would permit employers, who normally withhold social security taxes from employees, to defer withholding those taxes for four months, Sept. 1 through Dec. 31.

The memorandum guidelines apply to eligible NSCS employees, including students.

In an email Tuesday, NSCS Human Resources Specialist Kara Vogt said the NSCS is researching Trump’s proposal.

 “The NSCS is currently researching the memorandum and guidance regarding the employee social security tax withholding deferral,” Vogt said.

Under Trump’s plan employers may opt  not to participate, according to an email notice  about the plan issued Monday from the National Newspaper Association.

Based on the Treasury department’s memorandum those eligible for the program would be employees who earn $4,000 every two weeks, or an estimated $104,000 annually. At Chadron, Peru, and Wayne state colleges, that encompasses some mid-level administrators, most faculty, support staff and student employees. 

An employee who earns an estimated $55,000 annually pays roughly $280 a month in Social Security tax. Over a four month period, that reaches $1,120, which would come due in one lump sum, payable between Jan. 1 and April 30, 2021. On May 1, 2021, interest and penalties will accrue for any unpaid “applicable taxes,” the memorandum states.

However, if that employee earning $55,000 annually participated in the program, then resigned Dec. 31, the NSCS would be on the hook for that $1,120. Furthermore, the employer would be left to their own devices to collect from the employee who resigned.

Those regulations apply to all employers who participate in Trump’s  deferral plan. 

As of press time Wednesday, at least two of CSC’s three employee unions had not even considered the plan. 

 CSC Faculty Union Representative to the State College Education Association James Koehn said Wednesday the issue has not been discussed among that union’s members. 

“This issue has not been a subject of conversation on the local level. I am unsure if the state-wide or national groups have taken a position on the issue,” Koehn said.

Kristol Cummings, vice president of Nebraska State College Professional Association said, “We have not, as a local group, discussed it.”

 An email and phone call late Wednesday afternoon  seeking comment from Melvin Ainslie, a union representative for support staff, yielded no response.