Social Security Tax Withheld

[fasteddie577]

Hi, what happens in the event that your employer withheld less than the required 6.2 percent tax on income for social security tax? The amount is not major, but it's still less that 6.2 percent. The percentage amount withheld is 6.173 percent. Thanks

PS: the income is not over the threshold amount for social security tax. 

[JohnB5677 · Accepted solution]

You will have to inform your employer, and request that it be corrected.

This is unusual.  The calculations are typically done electronicky, and your employer must file reports to the IRS and Social Security.

On your W-2 does Box 1 plus any contribution to retirement plans equal box 3?

Please contact us again and provide some additional details.

[VolvoGirl]

Are you using box 3 or box 1?  SS is 6.2% of box 3.  How much is in box 3 & 4?  

[fasteddie577]

Yes, box 3 of the W-2.  When I divide SS Tax Withheld in Box 4 by the wages in Box 3, the ratio I get a ratio of 6.17292 percent.  The underpayment of social security tax $36.  Thank you.

[fasteddie577]

You asked: "On your W-2 does Box 1 plus any contribution to retirement plans equal box 3?" 

Yes, that is correct.  Thanks. 

[VolvoGirl]

I just noticed something.  Since the difference is $36 and the rate is .027 different....that can indicate an amount has a transposition in it.  If a number can be divided by 9 evenly can mean an amount was transposed.  Why did you notice box 4 is wrong?  Did Turbo Tax give you a message?  Or why were you checking?  Double check all the amounts again with the calculator and check your entries.  

[fasteddie577]

I did get a message. I also verified with my calculator. It is off. We are letting the payroll department know so they can look into it. I checked the mid-year paystub and it calculated to 6.2 percent on the SS Taxes WH through June 30th.  Thank you. 

[VolvoGirl]

What was the message in Turbo Tax?  I can't make it give me a message if box 4 SS is too low.  Did it say your employer took out too much?  Did you try deleting the W2 and manually entering it?  That usually clears something out.   Or check W2 box 12. You may have entered Code A by mistake.

Can you post the screen shot of the message?