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Social Security Withholding Tax Law

Social Security Withholding Tax Law - As required by federal law, an employer must by payroll deduction withhold social security taxes from employees, if applicable, at the current applicable percentages. All employees are subject to social security taxes at current rate except:

This reflects federal, state, and local income tax withholding as well as Social Security Withholding Tax Law. Tax law requires us to display the two components of Social Security taxes: Medicare and FICA.

The most common tax withholdings are:

• FICA - Federal Insurance Contribution Act (Social Security)
• FED W/H - Federal Withholding Tax
• NJ W/H - NJ Withholding Tax
• NJ TDI - NJ Temporary Disability Insurance
• NJ UIC - NJ Unemployment Insurance Compensation
• NJ HCS - NJ Health Care Subsidy (Portion of Disability Insurance)
• NJ WFD - NJ Work Force Development (Portion of Unemployment Insurance)

Social Security Withholding Tax Law is a social tax” to pay for the advantages to society of giving a measure of economic independence to its elderly and a greater sense of economic security to its workers.

Wages paid to employees are exempt from income and Social Security Withholding Tax Law if the employee meets all of the following requirements:

• earns less than $150 from an agricultural employer
• is employed as a hand-harvest laborer
• is paid on a piece-rate basis
• commutes daily from his or her permanent residence
• is employed in agriculture less than 13 weeks during the preceding calendar year

Wages paid to employees meeting these requirements, although exempt from Social Security, are still counted toward the $2500 amount by which coverage is determined for other employees who do not qualify for this exemption. These are stated in the Social Security Withholding Tax Law.

The maximum amount of wages to which the Social Security Withholding Tax Law and employer tax rates applied was $87,000 in 2003. This amount, known as the wage base, is subject to change as average wage levels change. In addition, a Medicare tax of 1.45 percent of an employee’s gross wages was imposed on an employee and employer in 2003, for a total tax of 2.9 percent. This tax applied to the full amount of an employee’s wages which refer to the Social Security Withholding Tax Law.

Having a portion of your monthly Social Security benefit withheld to cover the amount of estimated taxes you owe could be a convenient way to sidestep the chore of writing out an estimated tax payment four times a year. To set up automatic withholding, complete Form W-4V and take or mail it to our local Social Security office. You can down-load or order the form, by contacting Social Security (800-772-1213, or the IRS (

Generally, your request will be processed when SS receives the form, and the estimated tax will be deducted from your next monthly benefit check. At yearend, your 1099 will show the amount paid to you and the amount withheld.
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