LITTLE ROCK, Ark. — A lot of you may see bigger paychecks through the end of the year.
Here’s why: a payroll tax deferral kicked in yesterday and we’ve gotten several questions about it.
On August 8, President Trump issued an Executive Order to defer Tier 1 payroll taxes for September through December for employees earning less than $104,000 a year or $4,000 every two weeks.
Now keep in mind, this is not a tax break. This money will most likely have to be paid back in the future. According to A’Shira Nelson at Apple Growth Partners, “This tax obligation is not being forgiven.”
We’ve got a lot of viewers turning to our Verify team, asking, “Can my employer opt-out of taking part in the deferral?"
The answer is yes. They’re not obligated to defer.
So you’ll want to make sure you check with your employer to find out if they’ll continue to withhold your portion of the social security tax or not.