[US] How President Trump’s payroll tax holiday will work

[US] How President Trump’s payroll tax holiday will work
03 Sep 2020

As of September 1, an executive order signed by President Trump in early August providing a payroll tax holiday for American workers can be implemented. This is a temporary measure - with the potential for negative consequences going forward - but one that can potentially put more money into workers’ pockets in the short term.

Congressional leaders continue negotiations on the next COVID-19 stimulus package but President Trump announced four executive orders at an August 8 briefing. Questions remain about whether employers will participate in the payroll tax holiday and how it will impact financially stretched workers. Amid such confusion, Forbes breaks down the deferral and its implications.

As of September 1, an executive order signed by President Trump in early August providing a payroll tax holiday for American workers can be implemented. This is a temporary measure - with the potential for negative consequences going forward - but one that can potentially put more money into workers’ pockets in the short term.

Congressional leaders continue negotiations on the next COVID-19 stimulus package but President Trump announced four executive orders at an August 8 briefing. Questions remain about whether employers will participate in the payroll tax holiday and how it will impact financially stretched workers. Amid such confusion, Forbes breaks down the deferral and its implications.