Anybody else notice a change in your paycheck stub this last check?

[MinnieLovesMickey12]

I am wondering if there has been some kind of change to the social security withholding that are taken out of everybody's check or if my husband's company just made a mistake on his check.

Normally they take out $550 every two weeks of my husband's check for social security withholding. This last check they only kept out $330.

I am wondering if there has been some kind of tax changes that I am unaware of? But I cannot imagine any kind of tax law change that would take LESS social security withholding out since SS is in such bad shape. If anything else I would think they might start taking out more.

I am wondering if this was just an accounting error or if other ppl have noticed the same thing?

 

[StitchandPooh'sMom]

I am wondering if there has been some kind of change to the social security withholding that are taken out of everybody's check or if my husband's company just made a mistake on his check.

Normally they take out $550 every two weeks of my husband's check for social security withholding. This last check they only kept out $330.

I am wondering if there has been some kind of tax changes that I am unaware of? But I cannot imagine any kind of tax law change that would take LESS social security withholding out since SS is in such bad shape. If anything else I would think they might start taking out more.

I am wondering if this was just an accounting error or if other ppl have noticed the same thing?

Has he made more than $113,700 this year? That is the maximum amount subject to SS taxes in 2013.

 

[Disney st8 of mind]

It depends on how much he makes. They take out a certain percent for social security up to a maximum income amount. Once you hit that number for your gross income (I think last year was 106,000) they can't tax you any more this year.

 

[blessedone03]

At $550.00 social security every week that puts his annual salary well over the taxable social security max for 2013. He must have hit his max this pay period. My guess is he will see zero coming out next paycheck if this is the case. It's a good problem to have!!

 

[A_Princess'_Daddy]

At $550.00 social security every week that puts his annual salary well over the taxable social security max for 2013. He must have hit his max this pay period. My guess is he will see zero coming out next paycheck if this is the case. It's a good problem to have!!

Correct, although at $550 biweekly, unless he's self-employed, taking a partnership draw or somehow else paying self-employment, they have been overwithholding as the maximum one would have to pay for OASDI per year is about $7,050 (6.2% of the first $113,700 earned in a year) and he would have hit that several months ago. Assuming roughly 20 paychecks thus far this year, on a biweekly basis, that means he would have paid $11,000 into OASDI, which is over the maximum (unless OP is netting up what is paid into OASDI and Medicare/FICA).

If he's paying the self-employment tax, then it is 12.4% of net taxable wages up to $113,700, but in that case he wouldn't have seen a drop yet as he hasn't hit the maximum of $14,099 for the year (again, assuming 20-21 paychecks for the year).

If he changed jobs mid-year, that could also be the reason, as each employer must withhold on the first $113,700, regardless of whether that will exceed the max for the year, and then the tax payer will receive a credit for the overpayment when they file their return for the year.

Barring that, there's an issue somewhere, as the numbers aren't adding up.

 

[MinnieLovesMickey12]

He did change jobs this year and yes he makes more than $113,000.

Thanks for the explanation. It makes sense that is what it must be.

He worked at his previous job for 16 years and this year decided he wanted a different area to run. He is a boat captain.

So maybe they won't be taking anymore out for the rest of the year. He will like that.

 

[MinnieLovesMickey12]

At the first company he worked at that he left that job they were only taking out $330 every two weeks. But with this new job his pay jumped up about 30k.

 

[crisi]

He did change jobs this year and yes he makes more than $113,000.

Thanks for the explanation. It makes sense that is what it must be.

He worked at his previous job for 16 years and this year decided he wanted a different area to run. He is a boat captain.

So maybe they won't be taking anymore out for the rest of the year. He will like that.

I love that paycheck. I don't think we get one this year since my husband switched jobs midway through the year - so we will get a social security tax refund when we file

 

[Cheshire Figment]

If he had more than one job, they each took out Social Security, and the total Social Security taxable income was greater than 113,000 the excess Social Security withheld can be refunded. This is done on Line 69 of IRS Form 1040 when you file your Income Tax Return.

Mike (CPA Retired)

 

[OhMari]

He did change jobs this year and yes he makes more than $113,000.

Thanks for the explanation. It makes sense that is what it must be.

He worked at his previous job for 16 years and this year decided he wanted a different area to run. He is a boat captain.

So maybe they won't be taking anymore out for the rest of the year. He will like that.

. Cool job.

If he had more than one job, they each took out Social Security, and the total Social Security taxable income was greater than 113,000 the excess Social Security withheld can be refunded. This is done on Line 69 of IRS Form 1040 when you file your Income Tax Return.

Mike (CPA Retired)

. Hi-jack-I always thought you were a female, I am so mystified. You are a great source of information, enjoy your posts and answers. You have a cool job too if you are still working at WDW.