LANSING, MI (WSYM) — Starting Tuesday, employers can start withholding payroll tax deductions from employees.
However, it would be a good idea to hold on to the extra cash.
Here’s how it will work:
President Donald Trump’s executive order defers the 6.2% tax that workers pay toward social security through Dec. 31.
But the catch is, employees still have to pay back everything they owe by April 30 of next year.
If the employer opts-into the deferral, employees can expect to get smaller paychecks starting in January as employers start deducting more to make up for what won’t get taken out this year.
Employees are only eligible if their bi-weekly paychecks are $4000 or less.
