Hi - this is a question regarding Guam taxation.Under Publication 80 a government employer in Guam is exempt from FICA. However, in this case they have chosen to deduct FICA from their employees, presumably so that their employees can receive Social Security/Medicare benefits. Given that they have chosen to deduct FICA, is the deduction based on total wages? Or can the employer deduct FICA after deducting the employee's pension contribution? In other words, may the employer CHOOSE when to deduct FICA (pre/post-pension contribution)?
Hello and thank you for using Just Answer,The FICA (Social Security and Medicare) is based on the Gross Wages. Only income tax can be calculated after the deductions.