President Trump signed several executive orders on Saturday. Workers earning less than $2,000 pre-tax dollars a week will have Social Security and Medicare taxes suspended. This will amount to 7.65% of your wages and will be in effect from September 1 – December 31, 2020. The president’s order also directs the Secretary of the Treasury to explore different avenues to eliminate the obligation to pay the suspended taxes, if nothing is agreed to the taxes will need to be paid back in full.
Another order may provide as much as $400 in enhanced unemployment benefits. For this to happen, each state must agree to enter a financial arrangement with the federal government for any unemployed person living there to receive additional benefits. The federal government would require states to pay for 25% (or $100) of the $400 each person may be able to receive weekly in additional aid. This benefit may not go into effect right away in Minnesota because an entirely new system to deliver the aid money would need to be established, which could take months.
Trump asked to renew the eviction moratorium what was in the CARES Act, to keep struggling Americans in their homes that initially expired on July 24, 2020, it would be extended until the end of the year. The last executive order relates to student loans held by the Department of Education and calls for the “temporary stop of payments and the waiver of all interest on student loans until December 31, 2020.”
Ultimately, the orders only come into effect once enforced. With democrats and Republicans still in negotiations, things could change quickly. If you have any questions, please feel free to reach out by email email@example.com or phone 507-577-1109.