Prior to issuing my W2, my employer did an assessment and identified the portion of temporary Social Security tax assistance that was provided for relocation expenses during the year that either: (1) Caused me to meet the Social Security limit earlier in the year than if I had not relocated; or (2) Caused me to meet the maximum Social Security tax obligation during the year, although I typically do not. As a result of these findings, my federal tax withholding was reduced by $3,255.67 before finalizing my W-2. Why would this have not also reduced a portion of my taxable income? I don't understand why Social Security tax would affect my Federal withholding so drastically. Please help, I can't get a straight answer from my employer, and I am worried that this was calculated incorrectly.
