Collins introduces bill to protect employees from surprise taxes

U.S. Sen. Susan Collins (R-ME) and 16 other senators joined as original cosponsors of bipartisan legislation that would make the payroll tax deferral optional for both private and public employees.

Sen. Collins on Oct. 19 introduced the Protecting Employees from Surprise Taxes Act of 2020, S. 4810, with bill sponsor U.S. Sen. Chris Van Hollen (D-MD) to require employee consent for any deferral of payroll taxes, according to the text of the bill. 

“As we continue to battle this public health and economic crisis, it is imperative that employees are given the choice on whether or not to defer their payroll taxes,” Sen. Collins said. “Our bipartisan bill would empower workers to make the financial decision that works best for them and their families.”

Specifically, the legislation would require employers to receive an employee’s consent prior to deferring any employee payroll taxes, according to a bill summary provided by Sen. Collins’ office. If done without an employee’s consent, the employee then would be protected under the bill, which would hold the employer responsible for the unpaid taxes.

The bill also would require employers who are participating in the deferral to provide notice to their employees explaining the tax consequences of the deferral and their right to participate or not to participate, according to the summary.

Several organizations and unions endorsed the legislation, including the American Federation of Government Employees, the National Treasury Employees Union, the National Federation of Federal Employees, the Senior Executive Association, the Professional Managers Association, and the National Active and Retired Federal Employees Association.