What a Trump payroll tax deferral would actually mean for your wallet

[mystery-ak]

What a Trump payroll tax deferral would actually mean for your wallet
The maximum benefit that Americans could see during that four-month period is about $2,149

   
By Megan HenneyFOXBusiness

President Trump on Saturday signed four executive actions as an attempt to sidestep Congress – deadlocked in negotiations over another coronavirus aid package – and provide relief to American workers and businesses still reeling from the pandemic.

That includes an order that would postpone the collection of payroll taxes from Sept. 1 through Dec. 31 for individuals earning less than $104,000 annually, or less than $2,000 per week.

Currently, all employees and employers pay a 6.2% payroll tax on wages capped out at $137,700. That money goes toward Social Security. Right now, an employee earning $50,000 per year would pay $3,100 in payroll tax. Workers also pay a Medicare tax of 1.45%.

Those taxes show up on your paystub as FICA, which stands for the Federal Insurance Contributions Act.

more
https://www.foxbusiness.com/money/what-a-trump-payroll-tax-deferral-would-actually-mean-for-your-wallet

[Fishrrman]

Doesn't help those of us who are retired, as far as I can see...

[Smokin Joe]

From the article:

The maximum benefit that Americans could see during that four-month period is about $2,149. But because Trump is ordering a payroll tax deferral, not a cut, the taxes will eventually be due at a later date.

For people who are living on the edge, financially, it is only kicking the can down the road. People I know who were making 80-100K a year are pulling down less than half that now, and often even less if they got a different job instead of signing up for unemployment. They will use almost every dime available to them, and get smacked with a tax bill in the (uncertain) future.