Attention - here is the scoop on the payroll tax cut

I am posting a correction!
I read the actual executive order followed the US code 26 U.S.C. 3101(a), the cuts are for items 2 and 3.
I am surprised by this very bold move, I originally thought it was only for federal income tax. Your Prez has brass balls.
It should save you 7.65% and your employer 7.65%

If you look at your pay stub, you will see 4 things:

1. federal income tax or federal withholding
2. SSN tax 6.2%
3. medicare tax 1.45%
4. state tax for those applicable

here is an hourly paycheck calculator that shows you the deductions

[link to www.paycheckcity.com (secure)]

Here is a sample Colorado paycheck

$15 x 40 hours
Gross Pay $600.00
Federal Withholding $59.43
Social Security $37.20
Medicare $8.70
State $24.00
Net Pay $470.67

Permanent? maybe...
“If I am victorious on November 3rd, I plan to forgive these taxes and make permanent cuts to the payroll tax... I’m going to make them all permanent.”

Sec. 4. Tax Forgiveness. The Secretary of the Treasury shall explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum.

[link to www.whitehouse.gov (secure)]


Sec. 2. Deferring Certain Payroll Tax Obligations. The Secretary of the Treasury is hereby directed to use his authority pursuant to 26 U.S.C. 7508A to defer the withholding, deposit, and payment of the tax imposed by 26 U.S.C. 3101(a), and so much of the tax imposed by 26 U.S.C. 3201 as is attributable to the rate in effect under 26 U.S.C. 3101(a), on wages or compensation, as applicable, paid during the period of September 1, 2020, through December 31, 2020, subject to the following conditions:

Last Edited by CharlieFoxtrot on 08/09/2020 09:50 AM