Payroll Office

Federal Insurance Contributions Act (FICA) Update

On August 28, the Internal Revenue Service issued guidance that allowed employers to defer the collection of employees’ social security payments from September 1 through December 31, 2020. However, employees would then be required to pay regular contributions and the deferred amount starting in 2021.

After hearing from employees, consulting with state officials and leaders at other state universities, we have agreed to follow the State of Tennessee’s policy and not to participate in this program. We will continue to collect regular social security payments so that employees are not disadvantaged by repaying the deferred amount in the new year.