What to Know About President Donald Trump’s Payroll Tax Deferral Plan
PRESQUE ISLE, Maine (WAGM) - Some questions still surround the payroll tax deferral signed by President Trump.
The tax deferral program went into effect on September 1st and will run through December 31st.
Employers can choose whether they want to participate. If they choose to, employees would see a bigger check now, but it could mean a smaller check beginning in January, because as of now, the deferred taxes will have to be paid back.
“If they elected to have it deferred, then that means the employee would see more money in their paycheck. However, come January 1st, 2021, that payroll tax would then almost become double. As of right now all employees and employers would have to pay that tax back. If they opted out, then there would be no change in the employee’s payroll and that tax would still be deducted and payed into the Social Security Administration,” Michelle York of Thompson-Hamel says.
While the President can defer taxes, only congress can waive them.. so it would take an act of congress to forgive deferred taxes. Due to the uncertainty surrounding the deferment many businesses are opting out as they are reluctant to leave employees with less take-home pay come January.
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