What a Trump payroll tax deferral would actually mean for your wallet | Fox Business

The maximum benefit that Americans could see during that four-month period is about $2,149

President Trump on Saturday signed four executive actions as an attempt to sidestep Congress – deadlocked in negotiations over another coronavirus aid package – and provide relief to American workers and businesses still reeling from the pandemic.

That includes an order that would postpone the collection of payroll taxes from Sept. 1 through Dec. 31 for individuals earning less than $104,000 annually, or less than $2,000 per week.

Currently, all employees and employers pay a 6.2% payroll tax on wages capped out at $137,700. Right now, an employee earning $50,000 per year would pay $3,100 in payroll tax. That money goes toward specific programs such as Social Security, health care, unemployment compensation and workers’ compensation. Workers also pay a Medicare tax of 1.45%.

Source: What a Trump payroll tax deferral would actually mean for your wallet | Fox Business

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