Social Security Horsesh**

The first paycheck of the completely and totally not a bribe for votes social security deferment is here. 

I have the pay check going in, but how do I account for the immediate offsetting obligation of social security deductions I will be paying in January?

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  • Make a category such as Taxes Holding or similar and budget the difference there (ie if your check is normally $1000 but this time it is $1075, the difference is $75). You will likely have to repay via additional deductions beginning in January so when you get a check that is only $925, you can move $75 out of the Taxes Holding  to TBB.

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  • As I understood the instructions to employers on this, what is supposed to happen for any employer that opts in is that they will not withhold FICA for the rest of the year, and then employers are to double employee withholding for FICA for about 4 months in 2021. So like jenmas said, create a holding category for the money and when you start getting smaller paychecks in January to pay it back, you can supplement your TBB with that category so your budget doesn't take the hit. And if it does wind up being forgiven, you can just release that money into your budget wherever you like.

    The reason they have to do it that way is because it is an employer paid tax, so there is no vehicle to collect it from employees other than through payroll deductions as the system is built right now. It's not like income taxes where you can just make up the difference on your return at the end of the year.

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