ATLANTA, Ga. (CBS46) -- President Trump's payroll tax deferral begins today, September 1. The president's executive order bypasses Congress, deferring the 6.2% that goes to Social Security for every dollar you earn until the end of the year.
Better Call Harry asked CPA John Pritchard what the plan means for a teacher earning $40,000 a year.
"So that’s about fifty a week I believe, that would increase your pay," replied Pritchard.
But there are strings attached.
You’ll have extra money going into the bank but come January, your employer will have to pay it back, meaning, you’ll have to pay it back. Unless Congress acts to forgive it.
Pritchard says this is a loan of uncertainty.
"There’s some problems there because first of all the employer is going to have to go back to every employee and take out twice as much as they would for Social Security beginning January. Come January 1st. what if the employee is no longer working there?"
Most importantly, Treasury Secretary Steve Mnuchin says the plan is optional. That means your employer may not participate.