by Ryan McMaken
President Trump issued a new executive order on August 8 directing the Treasury Department to defer the 6.2 percent Social Security tax on wages for employees making less than about $100,000 a year. The suspension on collections will be in effect from September 1 through December 31.
Unfortunately, the suspension on collections—which applies only to the employee share of payroll taxes—doesn’t amount to an actual tax cut, since collections could resume at any time after December 31. Moreover, once the September-December deferment period is up, employees would still be responsible for their tax liability back to September 1.