THIS COULD AFFECT YOUR PAYCHECK

November 17

Rising Star
BGOL Investor

To be clear, the President is asking Treasury to look into whether those payroll taxes can be forgiven. For now, however, the Executive Order only allows for deferral. That means - without further action - that the taxes have to be paid. The deferral is effective for the period of September 1, 2020, through December 31, 2020.
 

November 17

Rising Star
BGOL Investor

Trump instructs the U.S. Treasury to halt collection of payroll taxes from Sept. 1 through Dec. 31 for workers who earn less than $4,000 every two weeks (that’s people earning under about $104,000 a year).
This will feel like a tax cut for a few weeks because workers will end up with larger paychecks while the tax is not collected. But it is technically a tax deferral, meaning the taxes will still be due at a later date.
Trump attempts to wrest tax and spending powers from Congress with new executive actions
The president called on Congress (and presumptive Democratic presidential nominee Joe Biden) to make the tax deferral a permanent tax cut, but Trump is acknowledging he does not have the power to cut taxes on his own. That would take action from Congress.
 
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