Back on August 8th President Trump signed a Memorandum on deferring payroll tax obligations in light of the ongoing COVID-19 disaster. This scam went into effect yesterday. It just postpones paying the payroll tax until after the election. An article by Darla Mercado at CNBC on August 31, 2020 titled The payroll tax deferral takes effect Sept. 1. What it really means for your paycheck explained its effects:
“President Trump
issued an executive order to defer the 6.2% tax employees pay toward Social
Security from Sept. 1 until Dec. 31. This is only a deferral — not forgiveness
of the tax owed.
The IRS issued
guidance late last week, placing the responsibility on employers for collecting
the tax deferred. It must be paid by April 30, or else penalties, interest and
other taxes will apply.
Employees who
partake in the payroll tax deferral would enjoy a temporary boost in their
take-home pay for the remainder of the year. However, they will see smaller
paychecks early next year as employers withhold and pay the deferred amount to
the IRS.”
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