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Please share the following information with your agency Servicing Personnel Officers, Payroll Coordinators/Liaisons and all employees that had and repaid 2020 SS tax deferral, also referred to as Old Age Survivors Disability Insurance. This memo is not intended to provide legal, tax or accounting advice, and employees should consult their tax advisors concerning the applications of tax laws to any particular situation.
The 2020 SS tax deferral has been repaid, either directly from an employee and/or paid by an agency on behalf of an employee, which will result in a 2020 Form W-2C to be issued. The correction to the Social Security Tax Withheld (box 4) will show an increased amount indicating the 2020 SS tax that was deferred and since repaid. On April 25, 2022, we will begin issuing the Form W-2C to all impacted employees, via the below method based on an employee’s status as of Pay Period (PP) 2022-08:
- Active Employees:
- The Form W-2C will be added in Employee Express (EEX).
- When available, employees will receive an email from EEX.
- Inactive Employees:
- The Form W-2C will be mailed to the current address in FPPS, since they no longer have access to EEX.
In most cases, no further action is required by the employee to file an amended income tax return for 2020. However, there could be a rare situation when an employee may need to file an amended income tax return. Please reference the Payroll_Tax-Deferral_Repayment_FAQs.pdf page 9, question 27, or the IRS link for more information https://www.irs.gov/forms-pubs/form-w-2-reporting-of-employee-social-security-tax-deferred-under-notice-2020-65
To identify all impacted employees, please refer to the listing that was provided to the agencies on January 19, 2021, by the Payroll Operation Division showing the total dollar amount each employee had deferred in 2020. The listing was emailed to the primary and alternative UGR(s) by Christine Zertuche-Rocha or Lisa Puente.
For any questions regarding the deferral or repayment, agencies can refer to the aforementioned Payroll Tax Deferral Repayment FAQs. If employees have questions, they may contact the Interior Business Center (IBC) Customer Support Center (CSC) at 720-673-9958 (interim contact number) or by email at Payroll_Helpdesk@ios.doi.gov. Again, neither the IBC nor the CSC is qualified to provide tax advice.
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