Postal Service Not Implementing Payroll Tax Deferral

September 22, 2020 4:57 PM
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Burlap bag labeled 'payroll' with coins around it and a calculator sitting next to it

The Postal Service will not be implementing the Trump administration’s temporary payroll tax deferral for its employees.

The Postal Service made the announcement today and said the decision was made “after thoroughly considering the impact on both employees and the organization…” It noted that the deferral means that USPS employees would be required to pay back the taxes between January and April in 2021. “These deferred payments would be in addition to next year’s taxes,” added the USPS announcement.

Most civilian federal employees will be subject to the payroll tax deferral which was enacted via an executive order. Some lawmakers were pushing agencies to make the tax deferral optional since the taxes would still be owed after the first of the year.

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Ian Smith is one of the co-founders of He enjoys writing about current topics that affect the federal workforce.