The deferral announced by Mr. Trump applies to the Social Security portion of the payroll taxes that employees pay, and covers the period from September through December; Medicare payroll taxes are untouched. Eliminating that tax liability would require congressional approval, and lawmakers from both parties have shown little desire to cut payroll taxes. It could turn into a tax cut if Congress later comes back and decides to do so. Usually, employees and employers each pay a Social Security payroll tax of 6.2 percent of wages, or 12.4 percent when put together. The $2.2 trillion stimulus law approved in March — with support from Republicans and Democrats alike — allowed employers to delay their portion of the Social Security payroll tax.

Source: New York Times August 11, 2020 20:03 UTC