Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
We have a new employee in California who has had the maximum amounts taken for CA SDI & FICA SS tax. How do we stop CA SDI from being taken out as well as FICA?
Solved! Go to Solution.
Once you pay the employee enough wages to hit the max tax wages/amounts for the year the taxes will automatically stop.
Note that prior pay from another employer doesn't count: Each time an employee starts a new job, the taxes start over.
If this results in the employee paying to much for an employee-paid tax, like the employee portion of SS and Medicare, the employee will get a refund on their taxes for the overpaid amount.
Company paid taxes, however, don't work that way. Where an employee works multiple jobs in a year, each employer pays up to the max tax.
Once you pay the employee enough wages to hit the max tax wages/amounts for the year the taxes will automatically stop.
Note that prior pay from another employer doesn't count: Each time an employee starts a new job, the taxes start over.
If this results in the employee paying to much for an employee-paid tax, like the employee portion of SS and Medicare, the employee will get a refund on their taxes for the overpaid amount.
Company paid taxes, however, don't work that way. Where an employee works multiple jobs in a year, each employer pays up to the max tax.
BigRedConsulting, thanks so much for your quick response! Much appreciated.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here