Payroll Tax Holiday

My husband's paycheck next week is slated to have the reprieve from the payroll tax deductions. This reprieve is temporary through the end of the year. At this point anyway. We know that things can change. The unfortunate part for this holiday reprieve is that this is money that we don't need to use or spend and it will need to be paid back during the first half of 2021 with double the amount of payroll tax. 

Because we don't need the funds, we will simply save them in our savings account, earning a little interest, and plan to pull from the savings in the early months of next year if we are short. In the best case scenario, these funds will not have to be repaid and it will have been some forced savings! I would like that since we are diligently adding funds to our Pot of Possibilities. 

One help for us may be that my husband will finally get his promotion orders this fall which would put him above the income where the payroll tax holiday kicks in. That would mean less payroll tax to repay ultimately. I feel for people who really need this money and will likely use it, but may not do well when the taxes have to be repaid in early 2021.

Is your job participating in the payroll tax holiday? Do you have plans on how you will handle the lower income during the repayment period?

Here's an article from Forbes that explains the Payroll Tax Holiday if you need more information. Also might be wise to check with your human resource representative on how your employer is handling this payroll tax holiday.