On August 8, 2020, President Trump signed an Executive Order, Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster. This allows employers the option to refrain from withholding Social Security tax from their employees' paychecks from September 1-December 31, 2020 for employees earning less than $4,000 bi-weekly ($104,000 annually). This could lead to an extra 6.2% in take-home pay for many Americans. However, this may NOT be good, as employees will likely have to pay it back in early 2021, meaning they'll be taxed double from January 1-April 30, 2021. In this episode, I discuss what the Payroll Tax Holiday is, how it works, and the important considerations to be aware of.
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