As employees of small businesses get their first September paychecks, they’re probably receiving their usual amount — company owners are still withholding money for Social Security despite a presidential order allowing the tax to be deferred.
The order President Donald Trump signed Aug. 8 allows employers to stop withholding the 6.2% payroll tax from Sept. 1 through Dec. 31. Employees must make under $4,000 every two weeks to qualify. Trump said the order was aimed at putting more money into Americans’ pockets during the coronavirus outbreak.
Small business owners are wary about the plan. The tax must still be paid between Jan. 1 and April 30 of next year, which means employees could take an unwanted financial hit or companies might ultimately have to pay the government if staffers leave.