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socrateaser
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 38801
Experience:  Retired (mostly)
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We have an S Corp. My daughter works for us and another

Customer Question

We have an S Corp. My daughter works for us and another company.
JA: The Retirement Accountant will know how to help. Please tell me more, so we can help you best.
Customer: SS is being deducted from both companies; the possibility of over deduction for
JA: Is there anything else the Retirement Accountant should be aware of?
Customer: SS from both payrolls; is there a way to communicate between 2 payroll companies so that SS cap can be maintained; i.e. my daughter is receiving
Submitted: 2 months ago.
Category: Business Law
Expert:  socrateaser replied 2 months ago.

Hello,

Employers are required to withhold SS tax from an employee's wages, as wages are paid. The standard means of dealing with this issue is for the employee/taxpayer to report the amounts on their federal tax return and the IRS will refund the excess. Conceivably, one company could "lease" the employee from the other company, and then only one company would be withholding, because there would be only one paycheck (which would include wages equal to the pay from both companies). But, that's about the only way to avoid the overwithholding issue.

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Expert:  socrateaser replied 2 months ago.

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, Justanswer retains your entire payment, and I receive nothing for my efforts in your behalf.

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