Am I the only one who thinks Trump's payroll tax deferral is going to be a mess?

Beginning tomorrow, September 1, employers can opt to not withhold payroll tax from employees' paychecks if they meet the income guideline (basically earning less than 100K/year). The problem is it is only a tax deferral. Those taxes still need to be paid by next April. If an employer does participate, they will also start taking out extra money beginning January 1 to make up that money.

So folks may get a break now but they'll get hit with double taxes at the start of the year. I guarantee 99.9% of people won't understand or prepare for that. They'll think they're getting a windfall and spend the extra money and then be hurting in January when not only does the regular tax come back but they also have to repay the tax for the previous 4 months.

Fortunately, many employers have already announced that they will opt out of the deferral and will keep collecting the tax as usual.

If you do get the deferral, I'd recommend parking that money in savings so that you're ready in January when your tax shoots up and your paycheck drops.

I don't know, I heard that on Sept. 1, employers can waive payroll tax withholding from employees' paychecks if they meet income standards.

I've been very actively following the news in America about the wage tax deferral. I thought there would be a strong public reaction to it. Although I'm aware that I don't see the situation the same way from the outside. I live in London, and I've been employed all my life. As far as I can remember, I've never had a problem with withholding taxes or anything like that, although maybe I just got lucky. My girlfriend at work has an interesting system with earnings. They have the administration calculate it through https://www.payrollindex.com/payroll-services/. I was surprised when I heard about it, it was just the first time I heard that instead of a particular department in the organization, an outside company does the payroll. I think that's cool.

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