I am a new UAB employee. If my FICA tax for the year was fully paid by a previous employer, does UAB have to withhold anything on my behalf?
Yes, UAB must withhold and pay this tax for all employees, regardless of their earnings from or taxes paid by another employer. Taxes owed by employers and employees under the Federal Insurance Contributions Act (FICA) actually have two components: A 1.45 percent Medicare tax funds the hospital insurance (HI) portion of FICA. The Medicare tax applies to all taxable wages earned by an employee, without any annual limit and regardless of the source of the wages. As a result, this portion of FICA is never fully paid until it has been applied to all of an employee’s wages from employers during the year. A 6.2 percent Social Security tax funds Social Security’s old age, survivors, and disability (OASDI) benefit programs. This tax is discontinued once an employee’s earnings reach a certain annually adjusted limit, known as the Social Security taxable wage base. However, each employer must withhold and pay a matching amount of Social Security taxes until an employee’s earnings from that parti
Related Questions
- If a new employee has reached the limit for social security taxes with a previous employer in the same year, does the new employer need to take out the tax for both the company and employee?
- I am a new UAB employee. If my FICA tax for the year was fully paid by a previous employer, does UAB have to withhold anything on my behalf?
- employer as well as employee portions of the 15.3 percent FICA tax?
