What is the current cap on Social security tax? My brother makes over $300,000 a year and says they are still taking FICA out of his check.. I told him there was a cap, but he doesn't believe me.
Posts: 752 | Location: Massachusetts, USA | Registered: 08-14-02
FICA has a limit, but Medicare doesn't. (It used to, but it doesn't any more.)
For specific information, check here at the SSA website (or www.ssa.gov, find the "earnings and employment" link).
His employer is responsible to refund any excess withheld by mistake. (It's surprising that this would happen. Most bookkeepers use software with these limits built in.)
Posts: 3632 | Location: Washington, US | Registered: 06-03-02
