Change of Job - SS Deductions

[Eric9064]

I am switching jobs in a few weeks and when I do, I will have already met the social security tax deduction limit with my existing employer. Is it possible to have my new employer not deduct SS taxes from my check for the remainder of the year?

Not a major issue as I will get this money back when I file my tax returns, but I much rather have the money in hand.

Thanks,
E

[RWD]

Huh, I didn't even know this was a thing. I guess I don't make enough money.

I did find this from Wikipedia, which just says you'll get it back when you file your taxes (as you already know).

When an employee works for several different companies during a tax year, his or her Social Security deductions could exceed the cap, because each employer may not know how much the employee has already paid in Social Security tax in other jobs. The Social Security tax coverage will be calculated on his or her personal return, and any excess is applied towards his or her Federal taxes.

How about this solution: just adjust your federal withholding to withhold less (enough to offset the social security taxes). These will cancel each other out when you file your taxes next year and in the mean time you'll get your bigger pay checks same as if social security taxes were not being collected.

[Jenny1974]

I believe they will start over on your SS and you'll just have to recover the excess when you file.  That's how we do it at my company.

[birdiegirl]

I believe they will start over on your SS and you'll just have to recover the excess when you file.  That's how we do it at my company.

Yes, this is correct. They are required to make the deductions, so you have to wait until you file to get the money back.  Had this experience a couple times when my company has shifted employees between different legal entities mid-year.

[sokoloff]

I believe they will start over on your SS and you'll just have to recover the excess when you file.  That's how we do it at my company.

That is correct.

See the IRS instructions here:
https://www.irs.gov/instructions/i1040gi/ar01.html#d0e34771

[Eric9064]

Thanks for the responses. Pretty much what I expected.

[Capsu78]

A company can choose to exempt a new employee if presented with adequate documentation that you have already maxxed out your contribution- IE YTD paystub from prior employer...however, many HR department simply don't want the hassle nor responsibility.  We just went through this with my DW onboarding with a new company.  She decided with everything else that requires "set up" during a job transition, she decided to simply save her "HR favors" for more important issues.

[Elle 8]

...

How about this solution: just adjust your federal withholding to withhold less (enough to offset the social security taxes). These will cancel each other out when you file your taxes next year and in the mean time you'll get your bigger pay checks same as if social security taxes were not being collected.

I like RWD's idea.  It should work, right?  Even though SS and Federal are separate line items on paychecks, it's all accounted for on the 1040 when you file.

[walkwalkwalk]

...

How about this solution: just adjust your federal withholding to withhold less (enough to offset the social security taxes). These will cancel each other out when you file your taxes next year and in the mean time you'll get your bigger pay checks same as if social security taxes were not being collected.

I like RWD's idea.  It should work, right?  Even though SS and Federal are separate line items on paychecks, it's all accounted for on the 1040 when you file.

Only considering the excess social security. Not the total amount. Just keep that in mind when adjusting your W4