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Federal workers will soon see Trump bump in pay -- but there's a catch

September 13, 2020. Summarized by summa-bot.

US President Donald Trump signs executive orders extending coronavirus economic relief, during a news conference in Bedminster, New Jersey, on August 8, 2020. (Photo by JIM WATSON / AFP) (Photo by JIM WATSON/AFP via Getty Images)

Many federal workers will soon see a few hundred dollars more in their paychecks, thanks to a coronavirus relief measure signed last month by President Donald Trump.

Union leaders, however, are furious that their members are being forced to participate in the President's payroll tax deferral program, which many private business leaders have said they'll forgo.

That's because workers will have to pay back hundreds or even thousands of dollars in payroll taxes in early 2021, because Trump's move simply pushes back the date the levy is due.

Starting with this pay period or the next one, federal workers who earn less than $104,000 annually will have the employee portion of their Social Security taxes -- 6. 2% -- deferred through the end of the year.

That can amount to nearly $1,100 in payroll taxes for workers making $50,000 a year or more than $2,200 for those earning $104,000, according to the US Chamber of Commerce.

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