Accounting, Payroll & Pension Issues/Social Security Tax

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Question
QUESTION: We just hired someone at our company that has already maxed out on their social security tax so she wants us to not with hold it.  Can we do this if she brings proof to us?  Do we need to adjust her Medicare too?

Thanks,

Barb

ANSWER: You cannot do this.  Each new job with each individual EIN number starts over with social security and Medicare.  this is the law.

Shirley

---------- FOLLOW-UP ----------

QUESTION: Thank you that's what I thought.  I would be able to prove this to her from the IRS website right?

Barb

Answer
Whenever a new EIN number is used for reporting taxes the social security starts with zero.  You have to start from scratch. This is true even if you have two companies with different EIN numbers. You can verify thids with Irs or with Department of Labor.

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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