Today starts Trump’s payroll tax deferral program. Please understand this is a deferral not a forgiveness. If you and your employer opt in for this payroll tax cut, you have to pay it back and with interest. So you might have a few extra bucks in your paycheck now, BUT
A minimum wage employee who’s working full time and earning about $580 per biweekly pay period would lose about half of their paycheck if all the deferred taxes were paid at once.
That’s because not only will employers have to pay back the deferred taxes from this fall by April 30, but they also must start applying the payroll tax as per usual next January.
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