RECOMMENDATION(S):
ACKNOWLEDGE that the Auditor-Controller, County Administrator, and the County’s labor partners recommend that the President’s Executive Order allowing deferments of federal payroll taxes for qualifying individuals not be implemented and therefore DIRECT the Auditor-Controller not to implement deferrals.
FISCAL IMPACT:
This is an administrative action with no fiscal impact.
BACKGROUND:
On August 8, 2020 the President issued a memorandum on deferring certain payroll tax obligations in light of the ongoing COVID-19 disaster. In summary, the deferral is for the FICA portion of the Social Security Tax (6.2%) and is intended for employees whose bi-weekly wages are less than $4,000 (or the equivalent amount with respect to other pay periods). After a thorough review of the memorandum and the subsequent guidance issued by the Internal Revenue Service (IRS), it would appear that for County of Contra Costa employees the negative consequences outstrip the positive.
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