No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
And if youre no longer working for your employer come January?
The guidance says your company can make arrangements to otherwise collect the taxes you owe.
This post refers to the 2020 tax season. For the most up-to-date info, check out ourrecent tax articles.
Social Security taxes amount to 6.2% of the first $137,700 of earnings for most employees.
But the payroll tax cut Trump ordered isnt really a tax cut.
Cutting taxes requires changes to the tax law, which Congress must approve.
That means that unless lawmakers sign off on a tax cut, youll owe the money sooner or later.
Not surprisingly, lawmakers are less than enthused about that prospect.
As a result, many companies arent expected to implement withholding changes.
If your employer does implement the changes, do not spend it.
Set upautomatic transfersto your bank account each payday for at least the 6.2% thats no longer being withheld.
you’re able to use that money to offset your lower paycheck come January if needed.
Consider setting up an account thats separate from your regular savings.
This is not youremergency fund, so avoid commingling the two.
Another option is to ask your employer towithhold more moneyfrom your paycheck by submitting a newW-4.
That means dont go spending this money.
Dont put it toward debt.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
