How could I have paid $300 too much in Social Security taxes last year?

Question

I've never had this happen before and am curious why it occurred.

Answer 1

If you had two different employers, and made over the limit of $94,200 for 2006 between the two employers, you would overpay your social security. Each employer is required to deduct social security from dollar 1 of your earnings and can not take into account what you may have already paid since the government wants the employer share. You, however, can request a refund on your 1040.

Answer 2

First it depends on whether you paid that to more than one employer or to a single employer. If you worked for more than one company, then neither company knew when you went over the maximum amount of payments. If this is the case the overpayment in social security gets added to your withholding and either increase your refund or decrease the balance due. If it was from a single employer, you have to get him to correct the situation, refund the overpayment to you, and issue a corrected W-2.

Answer 3

Did you have 2 jobs? Each job would take out like they're the only job you have, so if you made enough, you might have gone over the limit. If too much was taken out on just one job, then somebody messed up. In either case, the excess would be credited to you on your tax return.

Answer 4

The only way I can think of to have this happen is that you make over the limit for paying SS (like over $95,000) and your employer(s) didn't stop withholding SS when you hit the limit.

This can happen when
1) Your employer is incompetent or
2) You had more than one employer and they didn't know how much you made at the other employer, so they didn't know you were over the limit.

Answer 5

First of all, it might be a payroll error. Secondly it happens when people have two jobs and their total wages exceed $94200....I think that is the figure.