ST. LOUIS — You may notice a little extra money in your next paycheck. It's thanks to a payroll tax deferral signed by President Donald Trump that extends through the end of the year.
The payroll tax deferral was one of four executive orders signed by the president to help ease the burden on Americans. It went into effect on Sept. 1.
So, what does this mean for you?
For starters, you have to make less than $4,000 every two weeks to qualify. If that’s you, then you will see some extra money in your paycheck. But think of it as loan; this is a deferral not a tax break.
The temporary relief will come from your portion of social security tax, which is about 6.2% of a worker's gross pay.
So, how much could you see?
If you make $30,000 a year, it comes out to roughly $72 extra in your paycheck.
Keep in mind, it’s not required that employers withhold the social security taxes from workers’ pay. So, you should check with your employer to find out if they're taking advantage of the deferral.
Either way, remember this is not a stimulus check and it will have to be paid back eventually. Only time and policy will tell us when and how.