I Finally Saw The Loophole

I'm not usually a lover of "loopholes." I'm of the mindset that people should do what they say they are going to do and mean what they say.

Be transparent. Be truthful. Everyone should be treated equally with rules evenly applied across the board. There should be no loopholes. 

Except today I am thankful for the loophole I finally saw.

If you read my previous post,  Deferred Entitlement,  you know I was furious after  I received notification that, as a federal employee, I would be forced to endure a tax deferral I neither requested nor wanted. In fact, I  feel this tax deferral will ultimately harm the very people it was purportedly designed to assist.  I was so angry I did not read the whole  email. As a result  I missed the loophole.

But even without reading the whole document, I should have known there would be a loophole. Especially since the government is involved.

For the remainder of the year everyone with gross earnings below a certain threshhold each pay period will have a deferral of their OASDI (Old Age, Survivors, and Disability Insurance) tax.  This is the tax that funds Social Security. On the suface the deferral seems like a good thing for folks stuggling to make ends meet thanks to Covid-19 and the resulting shitdiwns and job losses.  However, it's just a deferral until the first quarter of next year, at which time the OASDI tax withheld will be doubled until caught up. 

Politicians in this election year are teasing us with the possibility of the deferral being forgiven next year...if they remain in office. 

Humphft...the government reducing taxes?  First, IMHO every politician has an agenda and second, their promises--especially election year promises--are not worth the hot air it takes to speak them into existence.  To say  I'm skeptical the deferral will be  forgiven is a gross understatement.

But there is a loophole.

The loophole is clearly stated. I didn't even have to seach for it. I just needed to calm down long enough to be able to realize it was there.

This tax deferral will not be applied to anyone whose gross earnings are above a certain threshold. Unfortunately my gross earnings are normally less than the threshold  so it really won't help me.

Normally.

However, due to  working overtime at the Covid Screening Tent, my gross earnings, this first pay period of the deferral, are above the threshold.  In fact, my OASDI withheld this payperiod was actually 1.5 times what it normally is. 

Aha! The loophole. In order to avoid the tax deferral my gross earnings have to remain above the threashold.

So, my strategy to avoid this tax deferral is to continue to work the Covid Tent, and any  holidays between now and the end of the year.  These actions will inflate my gross earnings.

My OASDI will be larger, but so will my net pay--with the added bonus of not having double OASDI taken out next quarter when the unforgiven deferral comes due.

I can breath easier now that I have an Anti-Deferral Plan.

Of the remaining eight payperiods, three  have holidays. Hopefully,  the Covid Screening overtime will continue to be available through the rest of the year.  It dried up once before, when we contracted it out to another company, so it's not a given. But so far, so good.

As long as I can work overtime, this loophole may keep me from having to have an unwanted deferral crammed down my throat.

I've decided loopholes may not be so bad after all. Especially when they apply to me.

In fact, I'm kinda lovin' this particular loophole.