Skip to main content
No. of Recommendations: 0
I believe that FICA does have a limit for the employer, but the problem is that the employer cannot know how much FICA has been paid by another employer, and so is on the hook for the whole thing. So if I work at Job A and max out my FICA, then quit and move on to Job B, my FICA deductions start again. Therefore, Employer A has paid FICA on my wages to my limit, but Employer B has also paid FICA on my wages even though they are beyond the limit. As the employee, I can get back the excess FICA when I file my income taxes, but Employer B is out the taxes that he has paid on my wages.

So effectively, the government seems to get to double dip in this instance.

At least that's how it reads to me in all the docs I've been reading.

You are absolutely correct in your reading. There is a limit for the employer equal to the amount of the employee; but that limit is for each employer for each employee in each year. If the employee have more than one job in a year, each employer must pay up to the limit.

IMMO, they should do away with the limit all together and that should take care of Social Security Trust Fund. If it is too much money, then perhaps except certain amount that way low income people would save even more in their taxes.

RPons
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.