payroll social security tax deferral, is it tiered?

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Topic Author
Faith20879
Posts: 778
Joined: Fri Mar 02, 2007 10:16 am

payroll social security tax deferral, is it tiered?

Post by Faith20879 »

DH's 1st November paycheck showed a FICA tax at the rate of 0.014 (vs 0.063 pre-pandemic). I was under the impression that the deferral is either no (0.063) or yes (0). Can someone confirm this?

Thank you!
muddgirl
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Joined: Wed Aug 17, 2016 1:33 pm

Re: payroll social security tax deferral, is it tiered?

Post by muddgirl »

1.45% is the Medicare tax rate. This was not deferred.
Topic Author
Faith20879
Posts: 778
Joined: Fri Mar 02, 2007 10:16 am

Re: payroll social security tax deferral, is it tiered?

Post by Faith20879 »

muddgirl wrote: Sat Nov 21, 2020 7:55 pm 1.45% is the Medicare tax rate. This was not deferred.
You are correct. I should not have used the word FICA.

His payckecks always list the social security tax (0.059) and medicare tax (0.014) separately.

The most recent one showed social security tax (0.014) and medicare tax (0.014). My question pertains to the social security tax withholding.

Thank you!
saivode
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Joined: Mon May 26, 2014 2:59 pm

Re: payroll social security tax deferral, is it tiered?

Post by saivode »

There is an income limit of $137,700 on the social security tax, after which the tax is not applied. Could DH have hit that limit mid-payperiod?
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WoodSpinner
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Re: payroll social security tax deferral, is it tiered?

Post by WoodSpinner »

OP,

I suspect your presence husband maxed out his Salary subject to SS ($137,700 for 2020).

https://www.adp.com/spark/articles/2020 ... unced.aspx

WoodSpinner
livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: payroll social security tax deferral, is it tiered?

Post by livesoft »

saivode wrote: Sat Nov 21, 2020 8:36 pm There is an income limit of $137,700 on the social security tax, after which the tax is not applied. Could DH have hit that limit mid-payperiod?
This.

Also folks should not mention to their colleagues that they have larger take-home pay because of lower FICA taxes unless they want their colleagues to know their salary.
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Topic Author
Faith20879
Posts: 778
Joined: Fri Mar 02, 2007 10:16 am

Re: payroll social security tax deferral, is it tiered?

Post by Faith20879 »

livesoft wrote: Sat Nov 21, 2020 8:40 pm
saivode wrote: Sat Nov 21, 2020 8:36 pm There is an income limit of $137,700 on the social security tax, after which the tax is not applied. Could DH have hit that limit mid-payperiod?
This.

Also folks should not mention to their colleagues that they have larger take-home pay because of lower FICA taxes unless they want their colleagues to know their salary.
Bingo!

It happened about the same time that I heard that Fed will participate in the SS tax deferral. I just assumed this must be the cause. Ah, the danger of being presumptuous.

Thanks!
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