Over the weekend President Trump bypassed the congress and released 4 executive orders that immediately affect your payroll, unemployment, housing, and student debt. Here’s what you can expect.
Delayed Payroll Tax Collection
If you are an individual making under $104,000 a year, you now have the option to delay paying some of your payroll taxes from September 1st through the end of the year. Your FICA tax, or Social Security and Medicare as most people know it, can be deferred to 2021 saving you 6.2% of taxes from every paycheck. At this point it is a deferral and will have to be paid back unless there’s an amendment to this order later.
Pandemic Unemployment Assistance Extended
The Federal government extended $600 a week to unemployed individuals in addition to their state aid. The PUA program expired on July 31st and president Trump restarted it again at $400 a week through December 6th. $300 of this comes from the Federal government while the state has to supplement the remaining $100. However, he only allocated $44Billion to this extension and that’s not enough to last even until October for everyone who is currently receiving unemployment benefits. So there is much uncertainty as to how this will be funded or if all unemployed Americans will receive these benefits.
Unfortunately there is no financial assistance provided to renters or guarantee on eviction bans. The executive order calls for “consideration” from the Health and Human Services and Disease Control and Prevention on whether or not an eviction ban is needed.
Student Debt Relief
If your student loan is held by the Federal government, interest has been waived through the end of 2020. You can also delay payments until December 31st. Principal payments are due on Dec. 31st and full payments will restart on Jan. 1st.