Social Security withholding stopped before limit, is this incorrect?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
wordsmith11
Posts: 28
Joined: Mon Mar 27, 2017 10:18 pm

Social Security withholding stopped before limit, is this incorrect?

Post by wordsmith11 » Fri Nov 08, 2019 10:09 am

Greetings: W-2 employee...I have surpassed the $132,900 wage base maximum for the 6.2% Social Security tax and my employer has completely stopped withholding additional funds, increasing my take-home amount. However, the total SS they have withdrawn is $7,890.99, not the maximum $8,239.80 that would represent 6.2% of $132,900. I do have pre-tax contributions for 401, HSA, medical premiums, etc. but don't think that applies.

Is there anything that would explain this other than an error on their part? If so, I presume I should bring this to their attention before year end?

Thanks in advance.

dcare
Posts: 18
Joined: Fri Dec 05, 2014 9:33 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by dcare » Fri Nov 08, 2019 7:21 pm

Is your YTD Fica Wage 132,900 and is the YTD Fica Tax 7,890.99?

Topic Author
wordsmith11
Posts: 28
Joined: Mon Mar 27, 2017 10:18 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by wordsmith11 » Fri Nov 08, 2019 7:36 pm

dcare wrote:
Fri Nov 08, 2019 7:21 pm
Is your YTD Fica Wage 132,900 and is the YTD Fica Tax 7,890.99?
My YTD Fica wage is above $132,900 but the Fica tax stopped at $7,890.99. I am guessing that's a mistake?

dcare
Posts: 18
Joined: Fri Dec 05, 2014 9:33 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by dcare » Fri Nov 08, 2019 7:50 pm

I would think so.
I didn't ask, but just to confirm, these are your pay stub numbers.
I cannot think of a valid reason why the YTD FICA Wage on your pay stub would be greater than 132,900. I would take this to HR and ask for an explanation.

delamer
Posts: 9057
Joined: Tue Feb 08, 2011 6:13 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by delamer » Fri Nov 08, 2019 7:52 pm

Yes, it sounds like something’s wrong.

You should check with payroll.

User avatar
FiveK
Posts: 7702
Joined: Sun Mar 16, 2014 2:43 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by FiveK » Fri Nov 08, 2019 8:04 pm

dcare wrote:
Fri Nov 08, 2019 7:50 pm
I cannot think of a valid reason why the YTD FICA Wage on your pay stub would be greater than 132,900.
FICA covers both Social Security and Medicare. There is no upper limit on wages for Medicare taxes.

User avatar
FiveK
Posts: 7702
Joined: Sun Mar 16, 2014 2:43 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by FiveK » Fri Nov 08, 2019 8:06 pm

wordsmith11 wrote:
Fri Nov 08, 2019 10:09 am
I do have pre-tax contributions for 401, HSA, medical premiums, etc. but don't think that applies.
401k contributions do not affect your FICA wages, but HSA and cafeteria plan medical premiums are subtracted from gross wages to get the FICA wage.

Topic Author
wordsmith11
Posts: 28
Joined: Mon Mar 27, 2017 10:18 pm

Re: Social Security withholding stopped before limit, is this incorrect?

Post by wordsmith11 » Fri Nov 08, 2019 8:58 pm

dcare wrote:
Fri Nov 08, 2019 7:50 pm
I would think so.
I didn't ask, but just to confirm, these are your pay stub numbers.
I cannot think of a valid reason why the YTD FICA Wage on your pay stub would be greater than 132,900. I would take this to HR and ask for an explanation.
Dcare, thanks for helping me figure this out. My FICA wage on this paycheck is actually lower than $132,900 and that's because we had a restructure in January and first pay period came from a different entity...when you add the two withdrawal amounts up, it equals the right amount. I forgot that happened in first pay period this year and not final pay period last year. :oops:

Post Reply