What is the impact of additional FICA withholding on employee/payees?

Excess FICA deductions are applied to an employees’ general federal income tax liability.  Employees have a few options with respect to any FICA over-payment.  They can reduce their withholding elections for future income by submitting a new W-4 to their current employer, they can claim the excess payment on their Form 1040 when filing their tax return, or they can let the overpayment help pay for their general federal income tax liability.

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Posted in: Services: Compensation Payments