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poweroninc
Level 1

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

Each individual payroll has not reached limit yet. I can either suspend the SS withholding or update wage base limit for this year. Also does it stop the employer portion of SS tax as well?
6 Comments 6
BigRedConsulting
Community Champion

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

You can't and you shouldn't. Each employer must deduct Social Security for all wages up to the limit. The same is true for most all state payroll taxes.

 

If the employee has multiple employers, they will pay more than the max for the taxes and then they'll get the taxes back when they file.

 

 

ZackE
Moderator

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

Thanks for reaching out to the Community, poweroninc.

 

You can turn off social security tax withholding for an employee while editing their profile.

 

Here's how:
 

  1. In your left navigation bar, go to Payroll, then Employees.
  2. Find the worker you want to make changes for and click their Edit option under your Action column.
  3. Remove the checkmark in your Ask this employee to enter their personal, tax (2020 W-4).... box.
  4. Access the What are this employee's withholdings? section.
  5. Under their Federal filing status*, click Exempt.


     
  6. Go to your Tax exemptions area and tick the Social Security and Medicare option.


     
  7. Select Done.

 

Now your employee with be exempt from social security withholding. You'll want to be aware that this doesn't turn off the employer portion of social security tax withholding.

 

I've also included a couple detailed resources which may come in handy moving forward:
 

 

I'll be here to help if there's any additional questions. Have a lovely Tuesday!

MD505
New Member

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

Similar situation - I am receiving a severance at the beginning of a year which will max out Social Security withholding, cause additional medicare tax withholding and eliminate the need for Social Security portion of self employment taxes through any income earned from my s-corp during the year. Is there a way to turn off Social Security for EE and ER, but increase the medicare portion of the withholding for EE only?

Jovelyn_M
QuickBooks Team

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

Hi there, @MD505.

 

In QuickBooks Online Payroll you were unable to completely turn off Social Security taxes for both the employee (EE) and employer (ER), as these are mandatory payroll taxes. 

 

As employers, we have a vital role in supporting the future of our workforce by deducting Social Security contributions from all wages, up to a specified limit. This commitment not only ensures financial security for our employees but also fulfills the responsibilities we share as a community.

 

However, to assist you, I am including an article on how to run, print, and customize payroll reports in QuickBooks Online Payroll: Run Payroll Reports.

 

Furthermore, consider simplifying your payroll operations with QuickBooks Live Assisted. Experience peace of mind this tax season with our personalized support. Our team of live experts is here to offer you tailored guidance, ensuring you navigate your taxes with confidence and ease.

 

In conclusion, please keep in mind that your success is our top priority. If you have any additional questions about Social Security taxes, feel free to leave a comment or start a new thread in this forum. We sincerely appreciate your trust in us and are committed to providing personalized guidance tailored to your specific needs.

FishingForAnswers
Level 9

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

@Jovelyn_M  The reply from @ZackE  is so wrong as to be ridiculous, despite being preceded by the correct answer from @BigRedConsulting . It will cause all federal payroll taxes to stop being withheld, not just social security.

 

That is on top of the fact that, as you yourself said, employers do not get a choice in when to stop withholding social security taxes from their employees.

 

How did @ZackE  even get to be an administrator without knowing this?

 

Why has your company allowed their post to remain like this for over a year?

BigRedConsulting
Community Champion

An employee has reached Social Security Wage limit for this year from multiple jobs but not this one, how can I turn off ss tax withholding for the rest of the year?

RE: In QuickBooks Online Payroll you were unable to completely turn off Social Security taxes for both the employee (EE) and employer (ER), as these are mandatory payroll taxes. 

 

Well that's stupid. What if the employee is not subject to social security and medicare? How are we expected to handle that?

 

There are at least four groups of employees who are exempt:

https://smartasset.com/retirement/exempt-from-social-security-taxes

 

This must be yet another way QuickBooks Desktop Payroll is better than Online.

 

RE: In conclusion, please keep in mind that your success is our top priority.

 

OK. How do you plan to fulfill your top priority and support employers who have employees who are not subject to social security and medicare?

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