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Accounting, Payroll & Pension Issues/SIMPLE IRA CONTRIBUTIONS
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Question
When they use the term, "tax-free" employee contribution, does that mean no deduction of taxes for Medical, SS, and SDI? Or just no tax deduction for State and Federal? or all?
The IRA contribution is federal income tax free, maybe state tax free and the rest get their share. Realize that the others are capped to certain income limit.
That's why when you get your W2 at the end of the year, you may have different total wages for the year.
Good luck
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Accounting, Payroll & Pension Issues
Answers by Expert:
Ed McFarland
Expertise
Over 20 years of experience as a CFO, Controller and now Consultant to small businesses. Dealt with 401k, 403b, deferred comp plans, key man issues, disablity, business continuation plans, HSA plans and other benefit issues.
Experience
Management experience in Financial Services, Manufacturing, Media, Logistics. Taught graduate and undergraduate business courses.
Education/Credentials
MBA
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