PCPS Forgoes Tax Deferment Program: School District

WINTER HAVEN, FL — Polk County Public Schools will not participate in a federal tax deferment program that would mean higher tax bills for employees during the first quarter of 2021, Polk County Public Schools said.

“This is a tax deferment program, not a tax forgiveness program,” said Michael Perrone, the chief financial officer of PCPS.

“To put this program into layman’s terms, it would be like not making a car payment this month, but then having to make two car payments next month," said Perrone.

According to the school district, on September 1, employers had the option to defer their employees’ Social Security taxes through the end of the calendar year. The intent was to provide workers with some financial relief amid the ongoing coronavirus pandemic.

School officials explained the program stipulates that workers must repay the deferred taxes by April 30, 2021.

“In the first quarter of 2021, our employees would have been paying both their normal Social Security taxes and repaying the taxes that were deferred in the fourth quarter of 2020," said Perrone. "Their tax burden would be double from January to April 2021. We could not impose that on our employees."

PCPS said it will continue to withhold and remit taxes to the government as usual.

Perrone said school districts across the state, as well as many private employers, are making the same decision.

“This program really isn’t in the best interest of employees,” he said.

The federal government has said it is exploring ways to eliminate the requirement that workers repay the deferred taxes, said PCPS.

Perrone said that if that happens then PCPS will pay its employees back.