Rebound

Actions

What the Payroll Tax Deferral means for your paycheck

Posted
and last updated

BAKERSFIELD, CA. — Workers who choose to participate in president trumps’ payroll tax deferral will see an increase in their take-home pay - but they’ll likely see smaller paychecks come 2021.

“It's one of the four presidential orders that came out after congress couldn't get together on a stimulus package," said Kelly Bearden, CSUB Small Business Development Center.

The payroll tax deferral would be in effect from September 1st until the end of the year in order to bring more money to employees pockets for the holiday season.

“It's a deferral - not an outright ‘you don't have to pay your payroll taxes for four months," said Bearden. "Employers have the option of opting in and the employees would have their social security deferred. They would have to pay it next year or their employers would have to repay it."

During a weekly small business development center webinar, local business owners were asked if they would participate in the program and 65% said 'no'.

“The reason employers are not participating is that they're not sure and what has happened is theyre depending on future guidance from the IRS. A lot of our employers have seen this during the pandemic. There's a lot of government programs but the devil in the details comes later," said Bearden.

,

Weather

Daily Forecast

View Hourly Forecast

Day

Conditions

HI / LO

Precip

Wednesday

08/20/2025

Mostly Clear

-° / 72°

0%

Thursday

08/21/2025

Partly Cloudy

103° / 77°

0%

Friday

08/22/2025

Partly Cloudy

108° / 80°

1%

Saturday

08/23/2025

Clear

104° / 80°

1%

Sunday

08/24/2025

Clear

105° / 78°

0%

Monday

08/25/2025

Clear

103° / 77°

2%

Tuesday

08/26/2025

Clear

101° / 75°

2%

Wednesday

08/27/2025

Clear

99° / 73°

0%