What Trump's Payroll Tax Cut Will Mean for You

President Trump issued an executive order to suspend the collection of Social Security payroll taxes. How much could it save you?

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After negotiations for another stimulus bill broke down, President Trump issued a series of executive orders to help financially distressed Americans. One of the executive orders (actually an executive "memorandum") suspends the collection of Social Security payroll taxes from September 1 until the end of the year for workers making less than $4,000 for any bi-weekly pay period (that's $2,000 per week, or $104,000 per year).

There are plenty of lawmakers on both sides of the aisle who don't favor a payroll tax cut (or deferral). It's not enough and doesn't benefit people who need help the most, they say. Many private employers have also failed to follow the order.

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Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.