Sinema-Backed Bill Protects Arizona Servicemembers’ Paychecks

Oct 13, 2020

Sinema cosponsored legislation allowing Arizona servicemembers and federal employees to opt out of the administration’s payroll tax deferral

WASHINGTON – Arizona senior Senator Kyrsten Sinema cosponsored legislation protecting Arizona servicemembers and federal employees from tax hikes and smaller paychecks next year caused by the administration’s payroll tax deferral. Sinema’s bill ensures all servicemembers and federal workers have the choice to opt out of the payroll tax deferral.
“Arizona servicemembers and public servants should be able to make their own financial decisions affecting their paychecks and future tax bills,” said Sinema.
Earlier this year, the administration issued an executive order allowing employers to defer workers’ payroll taxes through the end of the year. Federal agencies are requiring federal workers and military servicemembers’ payroll taxes be deferred through the end of the year with no ability to opt-out. However, under the executive order workers would still be responsible for paying back the tax in 2021, making their next year’s taxes higher and paychecks smaller. Sinema’s bill is a commonsense proposal to give workers and military servicemembers a voice and protect them from large tax bills and small paychecks in the future.