What if the employee is subject to OASDI during the first part of the year but then goes over the wage limit, should his or her allowance be grossed up for OASDI anyway?
No. If the employee is in a salary range that we know in advance will exceed the OASDI wage limit, then his or her allowance should not be grossed up to include OASDI for any pay period during the calendar year. It would not be appropriate to gross up the allowance for OASDI if the employee will exceed the wage limit anyway based on his or her normal earnings.
Related Questions
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- 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?
- What if the employee is subject to OASDI during the first part of the year but then goes over the wage limit, should his or her allowance be grossed up for OASDI anyway?
