Trump Signs Executive Orders Deferring Payroll Tax

President Donald Trump signed several executive orders pertaining to unemployment relief on August 8, 2020, including extending enhanced unemployment relief benefits, but at $400 a week instead of $600.

TAX

A payroll tax cut would reduce the amount taken out of workers’ paychecks to fund federal programs including Social Security and Medicare.Workers would see more take-home pay.

The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee.

The executive order would defer payroll tax payments for people who earn less than $100,000. It would take effect from Aug, 1 2020 and continue through December 2020.

No explicit exclusions announced on visa holders (H1B, L1 etc.) in the USA.

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