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The CSC Eagle Newspaper – Chadron, NE
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The CSC Eagle Newspaper – Chadron, NE
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State, NSCS won’t defer taxes

Brandon Davenport

Employees of Chadron State, and Nebraska’s other state colleges, won’t be seeing any changes in their paychecks come October, as the Nebraska State College System has decided not to opt-in to President Trump’s Payroll Tax option. 

Ultimately, on Sept. 9, the NSCS learned that the Nebraska Department of Revenue made the decision that state employees wouldn’t have the option to opt in. 

“In the letter to Agency Heads on September 9, 2020, (the Nebraska Department of Revenue) noted, ‘Primarily due to the detriment this would cause to teammates, in the form of a significant net pay reduction over a four-month period, the State has elected not to participate in the deferral,’” Judi Yorges, director of external relations and communications at NSCS said in an email. 

President Trump’s deferral plan allows employers to not withhold social security taxes from employees from Sept. 1 through Dec. 31 in order to provide COVID-19 relief for employees. Eligible workers are those earning bi-weekly pay of $4,000 or less during the pandemic. 

As the calendar turned to September, NSCS officials reported that they had not yet made a decision on whether to take advantage of the option. According to Yorges, the system office was exploring options and necessary modifications to the Nebraska Business Information System (NeBIS), a financial and payroll system the NSCS shares with the University System, to potentially facilitate the opt-in. 

The University System’s eventual decision to deny the opt-in then placed the burden on the NSCS to develop modifications to the NeBIS in a manner quick enough for staff to participate in the opt in. Shortly after consulting with the University System, the NSCS learned of the Department of Revenue’s decision. 

Social Security taxes not withheld under the plan are not forgiven; payment is due in 2021. During a period of time between Jan. 1 and April 30, 2020, employers who chose to opt-in will be required to collect the previously deferred taxes, as well as the employees normal monthly social security tax payment.