On Saturday, August 8, 2020, President Trump signed an executive order that is impacting Americans in many different ways. Today, we are going to be focusing on the payroll tax deferral and how that affects disability benefits. First, it is important to understand what the executive order changes about payroll tax. Here are some quick facts to get you up to speed:
- The order DOES defer the Social Security portion of payroll taxes
- The order DOES NOT change the Medicare portion of the tax
- These changes to payroll taxes, as of now, are NOT permanent
- Payroll taxes from September 1 to December 31 are simply deferred FOR NOW
- This impacts people that make LESS than $4,000 bi-weekly
The real question as it applies to Liner Legal and our disability claimants is — how can this change disability benefits? Many of our clients want to know if this can affect their dates of last and first insured, Social Security earnings records, and much more. Most likely, claimants will still have to show paystubs for recent earnings, if applicable.
This is what the order will likely NOT change, as of now:
- This order will not change benefits calculations
- It will not change how you earn quarters of coverage
- The order will not change laws about insured status
If you are feeling nervous and confused about the information that is quickly developing, you can relax knowing that nothing will change permanently right now. Disability Attorney Michael Liner is here to answer all of your questions, and bring you the latest information. If you have a question about this executive order or anything else, please complete the form here. Make sure to follow us on all of our social media profiles at the bottom of this webpage to never miss an update.