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Human Resources Service Center

Federal Tax Deferral Program

To:  Campus Community
From: Payroll

On August 8, 2020, President Trump issued a Presidential Memorandum directing the IRS to allow the deferral of withholding, deposit, and payment of payroll tax obligations for certain employees effective September 1, 2020. IRS guidance provided on August 28, 2020, clarifies employers can, but are not required to, participate in this program. State of California and the State Controller’s Office has made the decision to not participate in the Federal Tax Deferral program proposed by the current administration. The reasons for this include concerns that employees would experience a double withholding in 2021 to recover the taxes due. Further, if an employee separates from state service before the deferred tax was collected, the state may be required to pay the tax from state funds.

Questions can be emailed to payroll@csuchico.edu.