Payroll Policies

PR14 F.I.C.A. (Social Security Deduction)

Policy Status: 

Active

Policy Steward: 

Corporate Controller / Payroll

Contents:

PURPOSE:

To provide information concerning withholdings for the Federal Insurance Contributions Act (Social Security).

RATES:

Rates periodically change, per IRS and Social Security Administration changes. If there are questions about rates, contact the Payroll Office.

WITHHOLDING F.I.C.A.:

Each employer must withhold full Social Security from each employee's earnings up to the respective maximums regardless of whether the employee is also being taxed by another employer.

OVER - WITHHOLDING F.I.C.A.:

If a person is employed by two or more employers and the total income exceeds the stated maximum, there is a chance that Social Security may have been over-withheld. Credit for excess F.I.C.A. tax withheld in a current year may be claimed on the employee's income tax return by entering the amount of the excess withheld on the return.

PRIOR YEARS:

A refund of excessive F.I.C.A. tax for a prior year may be claimed by filing either an amended income tax return, or a claim for refund (Form 843) which may be obtained from the Internal Revenue Service.

FURTHER INFORMATION:

For questions, additional detail, or to request changes to this policy, please contact the Payroll Office.

Effective Date: February 22, 1993 
Date Approved: February 22, 1993 
Date Published: February 22, 1993 (Editorial changes- October 24, 2013)

Most Recent Changes:

  • October 24, 2013 - Editorial changes. Addition of policy steward information, in the event that there are questions or requests for changes to the policy.

Revision History (and effective dates):

  • May 31, 2013 - Editorial revisions made, per Payroll Office. In the RATES section, the rates table has been removed, as previous rates were outdated and IRS or Social Security Administration make changes periodically. Lastly, the EXEMPTION OF CERTAIN FOREIGN NATIONALS section has been removed.
  • June 14, 2006 - Revision History added.
  • April 19, 1993 - Updated "Rates" with current amounts and maximums. Revised "Over-Withholding FICA" with current dollar amount.
  • March 27, 1991 - Rate Changes.
  • February 3, 1989 - Rate Changes.
  • February 27, 1987 - Rate Changes.
  • August 4, 1983 - Rate Changes.
  • March 22, 1982 - Revised Verbiage Explaining "Rates". Update applicable rates and percentages throughout policy.
  • July 1, 1981 - Additional verbiage added to "Rates" section. Updated earnings amounts and percentages throughout policy.
  • April 17, 1978 - Added current rates, percentages and withholding levels to applicable policy sections.