Don't Qualify for President Trump's Payroll Tax Deferral? Boost Your Paycheck This Way Instead.
Some workers may be getting what seems like a pleasant surprise in the near term. Thanks to President Trump's recently signed executive order, workers earning $104,000 a year or less, or $4,000 or less per bi-weekly pay period, will be entitled to a payroll tax deferral that boosts their paychecks starting in September through the end of the year. The tax in question that's being deferred is the 6.2% of wages employees typically have to pay toward Social Security, and not having to pay it will give workers more money to spend in the near term.
Why did the president choose to defer payroll taxes? Lawmakers have stalled on negotiations for a second coronavirus relief deal, and until one is reached, a second stimulus check can't go out. Those stimulus payments serve the very important purpose of giving people money to pump into the economy, and so in the absence of sending those out, the president is instead temporarily boosting paychecks with the goal of achieving the same purpose -- giving Americans more money to spend.
But what if your earnings exceed the $104,000 threshold for a payroll tax deferral? If that's the case, there's another option for boosting your paycheck -- adjusting your tax withholding.
Source Fool.com
