Local accountant answers your questions about the payroll tax deferral live

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Posted at 4:03 PM, Sep 02, 2020
and last updated 2020-09-03 14:40:35-04

Kimberley Spates, a local certified public accountant with Spates Accounting, joined us live on Facebook and Twitter Thursday to answer your questions about the federal government’s decision to defer social security or payroll taxes for the remainder of the year.

View a replay of the live Q&A with Kimberley and News 5’s Homa Bash below:

Nearly all Americans are taxed 6.2% per check to go toward Social Security. For now, barring any action from Congress, most Americans will see larger paychecks through the end of the year. The guidance is based on an executive order signed earlier this month by President Trump in hopes of stimulating the economy.

The deferment is not an actual tax cut, and because the deferment was done via executive order rather than an act of Congress, the taxes will need paid back by April 30, 2021.

RELATED: IRS tells companies to not take out Social Security taxes from checks following presidential order

This new policy has raised many questions from our audience, and we wanted to give you the chance to interface with a tax professional to get those questions answered.

You can learn more about Kimberley Spates and her company, Spates Accounting, here.