Trump’s Coronavirus Stimulus Plan Could Shrink Your Paychecks in 2021 | Personal Finance

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.

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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:

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