We are still waiting for the dust to settle on what President Trump’s executive orders mean for taxpayers and business owners. There is a lot of talk about legal challenges and how Congress may react. But here is a summary of what we know now.
Temporary Payroll Tax Relief -
The President has directed the Treasury Department to grant all employers the ability to defer payment of the employee portion of payroll taxes from September 1 to the end of 2020. This is limited to employees earning less than $100,000 per year. While this seems like a tax cut, since paychecks will be larger, this is actually only a deferral of taxes since they will still be owed at a later date.
Unemployment Benefits -
The $600 Federal unemployment benefit expired at the end of July. Congress has been debating different levels to extend this benefit. The President has allocated $400 a week of Federal funds for Americans currently out of work. The funds will be available through December 6 or until the Disaster Relief Fund is reduced by $25 billion. But, States are required to make up $100 of the $400 in extended benefits.
Eviction and Foreclosure Hardships -
President Trump has directed his administration to prevent residential evictions and foreclosures resulting from financial hardships caused by the COVID-19 pandemic. Specifically, the executive orders state that the administration will take all legal measures needed to prevent this activity.
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