A payroll tax postponement scam

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.”