Does the Government stop taking Social Security Taxes after you make 90K at one single place of employment?

Answer 1

If you have earned $97,500 at one place of employment, any additional earnings in 2007 from that employer will not be subject to the 6.2% deduction for Social Security. However your employer continues to pay his share of Social Security.

If you have another employer, that employer also takes out Social Security from your pay up to $97,500.

There is no coordination between employers regarding your Social Security taxes. If you pay more than $6,045 in Social Security taxes because you had more than one employer, you get the excess back when you file your taxes. If a single employer deducts more than $6,045 from your pay, that employer refunds the excess to you.

Answer 2

The government doesn't stop taking social security tax; they just cap how much income can be taxed. this year it is $ 97,500 and next year it is $ 102,000.
If you fall into either of these categories, you will want to pay close attention to the '08 election as this will likely be a potential platform issue. Many candidates will likely seek ways to raise or get rid of the cap.
Some estimates say social security will not be able to pay out full retirement benefits starting in 2040; others estimate it will be much earlier than that (2017).
Anyway, good luck and don't forget to supplement your retirement with an IRA or 401 plan. If you are young, keep most of your money in stocks and bonds (pick risk level you are comfortable with), as you get closer to retirement switch to cash and low low risk stocks.
The earlier you start socking money away, the more you will have!

Answer 3

It's up the employer to stop withholding it. When I was making more than the cutoff, my employer did so on the dot. (If they changed, say, payroll companies during the year, there's often a screwup as the new company doesn't start with 1/1 figures.)

If the employer takes out too much, you'll have to go back to the employer and ask for the refund. The credit line on the 1040 is only if you have 2 or more employers and make more than the cutoff.

Answer 4

Close. The magic number for 2007 is $97,500. Social Security tax stops at that point and then re-starts on January 1st, 2008.

Answer 5

The Maximum amount of wages subject to Social Security (FICA) tax in 2007 is $97,500 per year.
Employer should stop taking out the tax when the employee's wages have exceeded that amount.

Answer 6

I think the number is $97,500 this year, but yes. And when you receive benefits, the amount over that isn't used to figure how much you get.

If you have multiple employers in the year, and between them they take out more than the max, you can get the extra refunded when you file your tax return.