From: EXCHANGE HR <EXCHANGEHR@aafes.com>
Sent: Tuesday, December 29, 2020 4:42 PM
Subject: Coronavirus Relief Act (Updates to Payroll Tax Deferral and FFCRA)

 

 

Coronavirus Relief Act (Updates to Payroll Tax Deferral and FFCRA)

 

On 27 Dec 20, President Trump signed the Coronavirus Relief Act extending the Payroll Tax Deferral repayment period and the Families First Coronavirus Relief Act (FFCRA).

 

Payroll Tax Deferral - BLUF: Repayment period extended to 31 Dec 2021.

On 8 August 2020, payroll taxes were deferred by Executive Order for associates making $4k or less per pay period. Impacted associates had their FICA taxes deferred from 1 Sep 2020 – 31 Dec 2020. The repayment period for the deferred FICA taxes originally was 1 Jan 2021 – 30 Apr 2021 through payroll deduction. The Coronavirus Relief Act extends the repayment period from 4 months to 12 months. The new repayment period for deferred taxes is 1 Jan 2021 – 31 Dec 2021. Associates unable to repay the deferred taxes by 31 Dec 2021 will begin accruing interest on 1 Jan 2022.  Note, for active associates, the repayment process will proceed through payroll deduction.

 

Families First Coronavirus Relief Act -BLUF: FFCRA expiration has been extended to 31 March 2021. The extension does not grant additional days for associates.

 

The Families First Coronavirus Relief Act (FFCRA) was set to expire 31 Dec 2020, but the new bill has extended the program until 31 Mar 21. FFCRA authorizes the payment of up to two weeks of paid leave for reasons related to COVID-19. The extension does not grant additional leave for associates that have previously used leave under FFCRA. For more information on FFCRA, click here.

 

POC/Program Manager: hrpolicy@aafes.com