WASHINGTON, D.C. (WEHT) — Congressman John Shimkus (R, Illinois-15) cautioned workers on Monday on President Donald Trump’s executive order allowing employers to suspend the collection of some Social Security taxes.
“What folks need to understand is that this is a tax deferral, not a tax cut,” says Shimkus in a press release. “If your employer is not withholding your 6.2 percent contribution to Social Security through the end of this year, they will have to collect that from you during the first four months of 2021.”
Trump’s executive order allows employers to defer some Social Security payroll taxes for employees earning less than $4,000 in a biweekly pay period.
While workers employed by companies who choose to not withhold their Social Security contribution started seeing slightly larger paychecks in September, Shimkus says it is important for workers to know they will have to pay for it when January comes.
(This story was originally published on September 15, 2020)
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