Payroll Tax Deferral Starts Today (Sept. 1)

Show me the Money! Some financial help could be on the way for you.

As we wait to see what the future of a second stimulus package is or is not, some financial help could be on the way for you. President Trump's payroll tax deferral is set to start today. (Sept. 1)

The payroll tax deferral is one of the four executive orders President Trump signed on Aug. 8, and will defer the payment of an worker's portion of the social security tax an employee contributes from their paychecks. That's about 6.2% of your gross pay that would go to social security, but instead will stay in your pocket.

So who qualifies and how much are we talking about?

How much money is that exactly?

According to an article from KCEN, you must make less that $4,000 bi-weekly to qualify. So at $30,000 per year, you should see about $71.54 per check or just about $143 per month in your pay check.

That's not a bad deal at all, but there is a catch. ATt the moment, this is just a deferral, not a tax break. You'll probably have to pay this money back at some point in the future, although President Donald Trump has said he’d like to see the uncollected taxes forgiven altogether if he’s re-elected in November. As far as paying it back, you could see additional holdings in the first few months of paychecks next year or a tax bill if paid back all at once.

Not all businesses are obligated to participate, so you should talk to your employer to see if they are participating in the deferral.

Some are even saying you should save the extra money if possible to help make it easier on yourself when you see smaller paychecks next year.