Since there’s a good chance payroll tax forgiveness won’t happen, it’s important to realize the bill could come due (and sooner than you think) for the president’s stimulus plan.
Your paychecks could be smaller next year due to Trump’s coronavirus relief
Workers who see larger paychecks this year because their employers stop withholding payroll taxes will be in for a nasty surprise come Jan. 1.
That’s because any employers who don’t withhold payroll taxes over the next few months could be required to collect the unpaid tax amount between Jan. 1 and April 30, 2021. And if any taxes remain unpaid after the April 30 deadline, interest and penalties will begin to accrue immediately on May 1, 2021.
This could be a major financial shock to workers because two things will happen starting January: