On August 6th, 2020 the president signed an executive order to extend relief as the Covid-19 crisis continues. Provisions of the executive order include:
- Extended enhanced unemployment benefits - these benefits will be extended to the end of the year. They have been reduced from $600 to $400 per week. States will be responsible for 25% of the cost.
- Payroll tax holiday - starting September 1st and to the end of the year, a withholding tax holiday will be in place. This means that the Social Security and Medicare portions of employee taxes will not be withheld. This represents a 7.65% increase in ones pay but is limited to those employees making less than $100,000.
- Federal Eviction Moratorium extended for those living in federally subsidized and federally backed housing.
- Student loan payment suspension extended to the end of the year and maintains the 0% interest period.
Payroll tax holiday is only a deferral. The deferral may become permanent and part of a broader tax cut package later. Also, the president has left open the possibility of making the tax holiday retroactive to August 1st.
