FICA ceiling reached

[Florence992]

What is the name of your state (only U.S. law)? Ohio

Can anyone tell me what the law is for FICA payroll withholding when work is completed in 2009 and paycheck to be paid first week of 2010. If FICA withholding ceiling has been met, can a company start withholding for the new year even though the work pay period was completed in the previous year? Thanks!

 

[Zigner]

What is the name of your state (only U.S. law)? Ohio

Can anyone tell me what the law is for FICA payroll withholding when work is completed in 2009 and paycheck to be paid first week of 2010. If FICA withholding ceiling has been met, can a company start withholding for the new year even though the work pay period was completed in the previous year? Thanks!

It's all about the check date.

 

[efflandt]

Taxes are always based on pay date, not when earned. An analogy is an advance of salary or commissions, which is taxed when the advance is paid out, not when salary or commissions pay it back (which might be a future tax year).