Here's Why You'll Need to Prepare for a Smaller Paycheck in 2021
Millions of Americans have been desperate for relief in the wake of the COVID-19 pandemic. While the coronavirus relief bill passed in March offered some help, it's been months since its stimulus checks went out. Meanwhile, unemployment is still disturbingly high and our economic recession rages on.
To provide some relief, President Trump signed an executive order calling for a payroll tax deferral from September of December of 2020 for workers earning up to $104,000 per year. During this time, the 6.2% payroll tax that's normally taken out to fund Social Security won't be applied to worker paychecks (assuming their employers adopt the deferral; some companies aren't), which means you may have more take-home pay to look forward to between now and the end of the year.
But don't get too comfortable with that extra money. Your paychecks may get a lot smaller in 2021.
Source Fool.com
