Medicare wages and tips are less than the sum of social security wages
and social security tips,
31, 2013, and then, on its fourth quarter 2013 Form 941, it may reduce the fourth-quarter wages, tips, and other compensation on line 2; taxable Social Security wages
on line 5a (subject to the wage base limitation for the year); and taxable Medicare wages and tips on line 5c, all by the amount of the same-sex spouse benefits treated as wages for the first three quarters of 2013.
I read Charles Reul's July 6 letter with respect to the cap on Social Security wages
, currently set at $102,000.
Employees and employers would pay a percentage of their social security wages
with which they would purchase health insurance.
Joe must file a Form W-2 for Mary's 1994 wages showing the entire $750 as social security wages
Because A was the service performer, the wages, although paid to B, are A's Social Security wages
S shareholders can treat their Social Security wages
from the S corporation as earned income for purposes of this limit.
Employees with Social Security wages
below the tax ceiling can arrange to receive reimbursements separate from salary.
If the accrued compensation payments are made in the year of death, the applicable amounts should be reported as Social Security wages
(box 3) and Medicare wages (box 5) on the decedent's final W-2, so that proper credit for those earnings is received.
Employers are required, therefore, to report these wages on Form W-2, in box 1 (Wages), box 3 (Social Security wages
, to the extent the employee has not already met the annual Social Security wage
base) and box 5 (Medicare wages).
Successors may take credit for predecessor Social Security wage
payments after establishing that a predecessor-successor relationship exists between the parties and that these Social Security wages
were paid during the calendar year in which the acquisition occurred.
Thus, social security wages
for a more-than-2% shareholder-employee should not include the value of employer-provided health benefits.