What Trump’s Payroll-Tax Deferral Could Mean For You

The president’s executive order deferred, but didn’t forgive, an employee’s SS tax liabilities



Workers shouldn’t be waiting for a windfall in their upcoming paychecks, tax-policy experts said Monday as they digested news of President Donald Trump’s executive order deferring payroll taxes.

The order might not bump up take-home money all that much per paycheck — and that’s assuming employers even pause the tax withholding from Sept. 1 to the end of the year, as the order instructs.

With stimulus talks stalling on Capitol Hill, Trump signed the executive order Saturday along with several memorandums to address last month’s expiration of a supplemental $600 unemployment benefit,looming student-loan bills and a potential eviction crisis.

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When it came to payroll taxes, Trump’s order said this: “This modest, targeted action will put money directly in the pockets of American workers and generate additional incentives for work and employment, right when the money is needed most.”

The order defers the employee’s obligation to pay a 6.2% Social Security tax per paycheck. It applies to people who “generally” make less than $4,000 every two weeks, which works out to an annual salary of $104,000.

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Source: Market Watch

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