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Winter 2020  Volume 13, Number 4        
 

This Just In ...

Defer Now, Pay Later

If you took advantage of President Trump's executive order allowing you to not pay Social Security payroll taxes this year, remember that you have to pay back the taxes in 2021.

Trump's order allows people earning less than $104,000 per year to stop paying Social Security payroll taxes from Sept. 1 until the end of the year. However, the tax will have to be withheld and repaid from paychecks issued between Jan. 1, 2021, and April 30, 2021.

The benefits are obvious for anyone experiencing financial difficulties during this pandemic. Your employer usually takes out 7.65 percent of your wages from your paycheck (6.2 percent for Social Security and 1.45 percent for Medicare). For example, if you're making $10 per hour and working a 40-hour week, then you're taking home an additional $100 per month.

There's always the possibility that Congress could forgive the taxes entirely, but don't count on that. For one thing, there would be great concern that those who took the opportunity would be unjustly enriched compared to those who didn’t. Most people and employers are not exercising the option.

 

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In this issue:

This Just In...

Your Life Insurance Options During the COVID-19 Pandemic

Health Benefit Options for Those Who Are Disabled

Tips for Saving for Retirement — Even When Budgets are Tight

Depression — No Excuse Not to See a Doctor

 


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