FAQ for Associates—Repayment of Deferred Payroll Taxes
Q1. Can associates select the amount deducted from their biweekly paycheck?
A1. Yes. The amount deducted from each check will be determined by each individual’s total repayment requirement and their selected repayment duration (one to 21 pay periods). Associates have until March 8 to select their repayment duration (one to 21 pay periods between PPE March 5 and PPE Dec. 10).
Q2. If an associate would like to pay it back at once, will that be an option?
A2. Yes. Associates have the option to repay their entire tax deferral during a single pay period (PPE March 5).
Q3. How do I know which repayment plan is right for me?
A3. Exchange associates can use the calculator—available now in Employee Self-Service—to view biweekly repayment amounts.
Q4. Can I change my repayment duration after selecting it in Employee Self Service?
A4. No. Once an associate has made their selection, the action is final.
Q5. What happens if an associate does not select a repayment duration in Employee Self Service before the repayment period begins?
A5. Associates who do not select a repayment duration in Employee Self Service prior to the start of the repayment period will automatically have their repayment duration set to 21 pay periods, beginning PPE March 5 and ending PPE Dec. 10.
Q6. Can I repay the taxes at the store? Why not?
A6. Per the executive order, employers must withhold and pay the total applicable taxes deferred from employee wages and compensation. As a result, associates will not have the option to repay their deferred payroll taxes in the store.
Q7. Why am I having to pay Social Security taxes twice?
A7. The tax is not being paid “twice.” Rather, the payroll taxes deferred last year are required to be repaid in accordance with the Aug. 8, 2020, executive order, “Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster.” Per the order, associates whose payroll taxes were deferred (those making less than $4,000 or less per pay period) from Sept. 1, 2020, to Dec. 31, 2020 are required to repay these taxes in 2021.
Q8. Why wasn’t I able to opt out of the deferral in the first place?
A8. While private sector employers had the choice to opt in or out of the payroll tax deferral, federal agencies and the military were required to defer the taxes of applicable employees (and collect repayment of the taxes) in accordance with the executive order.
Q9. What happens when payback is due while an associate is on leave without pay (LWOP)?
A9. The Exchange’s Finance and Accounting and Human Resources teams are working to program the payroll system to account for such instances. An update will be provided by FA and HR soon.
Q10. What if an associate is terminated, resigns or retires before the deferred taxes are repaid?
A10. Any monies owed will be deducted from associates’ last paycheck. The associate will be responsible for paying any residual balance due to the Exchange upon leaving. Note: This debt will be owed to the Exchange, not the Internal Revenue Service and Social Security Administration, as the Exchange is required to pay the deferral back to the IRS per the executive order.
Q11. Will the repayment be listed separately on associates’ paystubs to show that it’s for repayment of the deferred taxes?
A11. Yes. Pay stubs will show the amount recouped each pay period for the 2020 Federal Tax Deferment.
I will be out due to surgery on the above date to decide how to repaid back the deferred taxes . I wish to repaid the amount back in one sum of one paycheck. How do I accomplish this when I will be not be in a position to select a repayment?
Hi Pollie! I’ve passed your question on to the Exchange FA team. Someone will reach out to you directly to assist. Thank you!
Q6. Can I repay the taxes at the store? Why not?
q10.This debt will be owed to the Exchange, not the Internal Revenue Service and Social Security Administration, as the Exchange is required to pay the deferral back to the IRS per the executive order.
If the debt is owed to the exchange, why can’t the associates’ pay at the exchange -make it easier for the associates’, to pay off the debt before it come out of the check biweekly. (been saving for this , money on hand) Family helping Family make it happen.
Hi Timothy, thanks for your question. If you would like to make a single repayment you may choose to have the entire amount deducted from your PPE Feb. 19 paycheck in Employee Self Service. The function to select your repayment duration is coming soon to ESS.
When can we select our option to pay back
Hi Michelle, thanks for the question! The option to select your repayment duration in Employee Self Service is currently in the works and will be ready before PPE Feb. 19. Stay tuned!
Hello, how do associates who worked part of the time for the payroll deferral program and have subsequently left before the repayment period begins pay back the monies owed? Who do they contact?
Hi Elea, thank you for the question. Further guidance is being developed for former associates who still owe deferred 2020 payroll taxes. A letter with payback instructions will be sent to those who still owe once the specifics are finalized.
What if an associates last paycheck does not cover what they owe fully? how will the money be recuperated if they can not pay at the store?
Hi Chris, thanks for the question. The amount deducted per pay period is calculated to ensure the full amount is paid back by the end of each associate’s selected payback duration. The Deferred Payroll Tax Repayment tool in Employee Self Service will show you how much will be deducted per pay period for each selectable payback duration.
Is the repayment taken pre-tax or after taxes are applied?
Hi Polly. Great question! The repayment is deducted from associates’ paychecks after taxes are applied.
For associates that are leaving (in our case going to boot camp) and their last check does not cover the total, how will they pay in store before they leave? Is there an account number set up to ensure they all clear to any payments owed?
Hi Gabby, thanks so much for your question! The payroll tax cannot be repaid in store. Further guidance is being developed for former associates who still owe deferred 2020 payroll taxes. A letter with payback instructions will be sent to those who still owe once the specifics are finalized.
I input the amount of pay periods I wanted to pay back, how do I go back to make sure it went though? Was not sure the first one went so I input it again will this cause a problem?
Hi Margaret. If you go back to the Deferred Payroll Tax Repayment page in Employee Self Service, the drop-down box to the right of the blue text reading “Please Select the Number of Pay Periods for Federal FICA Recoupment” should display your selection. Try clicking the down arrow on the drop-down box: If you have successfully completed your selection, the box will remain static and no longer expand to show the different repayment options.
How do we pay it all back in one payment? Should it be paid with a check or money order? And who do we give it too?
Hi Cynthia, thank you for the question! The taxes must be repaid via payroll deductions. Per the above, the last day to select the number of pay periods you’d like the taxes deducted from was March 8. Associates who did not select a number of pay periods by this date will automatically have the taxes deducted over 21 pay periods.
Yes I opted for the 21 pay periods but I thought when the stimulus check comes in I would pay the $308 off…Would that be possible?
Unfortunately, the Exchange does not have the option to collect the repaid taxes through any means other than payroll deductions. Per last year’s executive order, employers must pay back the deferred taxes from withholdings taken from employee wages and compensation.
Ok thanks for the information…