September 23, 2020
The Postal Service has notified NALC that it will not implement the temporary employee payroll tax deferral established by a recent Presidential Executive Order. If implemented, the order would defer payroll taxes through December 31. The taxes would be owed at that time barring any further action. The Internal Revenue Service issued guidance (Notice 1010-65) making clear that employers are not required to implement the deferral. As a result, letter carriers will see no change in payroll taxes as a result of the executive order.