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Last MARCH 11, 2020 Trump Administration Seeks Payroll Tax Cut in Response to COVID-19 Outbreak.
Source: Holland & Knight
WHAT IS PAY TAX CUT?
Payroll tax cuts is sometimes referred to as "payroll tax holidays". It is an incentive of the goverment to offer tax reduction or tax elimination program on taxable income and profits.
Tax holidays are often used by local governments to reduce sales taxes. The last time PAY TAX CUT was given by the government was during President Barack Obama, 2011 and 2012. During this time Social Security Trust Fund under the employee (and self-employed) shares of the payroll tax that would have gone to was reduced from 6.2 percent to 4.2 percent.
In the event Congress would act on President Trump's call for Congress to provide "immediate payroll tax relief" as administrations response to the econamic effect of coronavirus (COVID-19) outbreak to income wage earner and small business, tax adjustments would take effect and our team is ready to help you make the most out of it.