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Don't Waste Your Money: Will you get a payroll tax holiday?

Don't Waste Your Money: Will you get a payroll tax holiday?
Posted at 2:16 PM, Sep 14, 2020
and last updated 2020-09-14 20:31:17-04

Most of us would love some extra money in our pocket this fall, heading into the holiday season.

That’s what a payroll tax holiday promises.

There has been a lot of buzz about a payroll tax cut from now till the end of the year which could mean 6 percent of your money back in your pocket.

But it’s looking like more and more companies will not be participating.

The president’s executive order suspending the Social Security tax took effect Sept. 1.

CNBCc says if you earn $50,000 a year, you could see an extra $100 in each paycheck through the end of the year.

Earn $30,000 a year? Pocket another $75 per paycheck.

But a growing number of companies, including Ford, GM, Chrysler and many that use ADP for payroll, are not yet participating.

Yours may not, either.

And from the doesn't that stink file, why many employers are opting out.

  • The order suspends collection of the 6 percent social security tax.
  • But you might not want to spend it.
  • That's because it is only a tax deferral, not a tax cut.

You will have to pay it back starting in January unless Congress forgives it.

And that stinks.

CNBC says at this point, it is just a short-term loan.

Now if Congress decides to forgive the tax holiday and let you keep the extra cash, many more businesses are sure to participate.