On Saturday, August 8th, 2020, President Trump issued four executive orders regarding his administration’s response to the ongoing COVID-19 pandemic relating to: 1) unemployment, 2) evictions, 3) student loans, and 4) payroll taxes.
- Unemployment: The order seeks to extend unemployment relief, which expired on July 31st, 2020, but reduces the additional unemployment benefit from $600 to $400 per week.
- Evictions: The order seeks to extend prior relief and protects homeowners and renters from evictions, though exact details appear unclear.
- Student Loans: The order seeks to extend the period that interest on student loans is frozen through the end of 2020.
- Payroll Taxes: The order seeks to waive the Social Security payroll taxes withheld from employees’ pockets for those with pretax wages or compensation during any biweekly pay period generally less than $4,000, with a beginning date of September 1st, 2020.
Check out the below resources for more information:
- Reuters Article - Factbox: Tax cuts, reduced unemployment benefits: What's in Trump's coronavirus executive orders
- Journal of Accountancy - Executive order delays workers’ payroll tax payments
The legality of these orders is likely to be challenged by the House and Senate, circle back to our blog to stay updated on the latest changes!