The Payroll Tax Cut: Here’s What It Means for You

President Trump's payroll tax measure defers Social Security taxes for four months.

AFTER WEEKS OF STALLED negotiations in Congress, President Donald Trump took it upon himself to issue a series of presidential executive orders, or memorandums, designed to reinvigorate the U.S. economy.

One of those executive measures called the “Memorandum on Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster,” includes a directive to suspend certain payroll taxes for American workers earning less than $4,000 on a pretax biweekly basis or about $104,000 annually.

“I am directing the Secretary of the Treasury to use his authority to defer certain payroll tax obligations with respect to the American workers most in need,” the memorandum says.

If you’re caught off guard by this new development, you’re not alone. Vocal support for payroll tax cuts has been limited, even among Republicans, and there are questions about whether Trump has the authority to make this directive a reality.

Source: US News

Article submitted by ScottInManhattan

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